Senate fails to repeal hated IRS rule

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- The Senate failed Monday night to pass two measures that would have repealed a law that businesses big and small say will cost jobs.

Starting in 2012, businesses will be required to issue 1099 tax forms not only to contracted workers (as they already do) but also to any individual or corporation from which they buy more than $600 in goods or services in a year.

The provision was adopted in March as part of the massive health care reform law.

Introduced by Democratic Sen. Max Baucus, the Finance Committee chairman, and Republican Sen. Mike Johanns of Nebraska, the amendments represent the second effort in the Senate to repeal the measure. Similar amendments were shot down in September.

The 1099 reporting requirement is expected to raise about $17 billion over 10 years by increasing tax compliance, but small business owners have argued the measure would increase paperwork, and drive up costs.

The U.S. Chamber of Commerce, which represents business interests in Washington, expressed hope that lawmakers will repeal the measure when the new Congress convenes in January.

"In this economy, there is no justification for supporting unnecessary regulations on small businesses that will hamper their ability to get Americans working again," Chamber of Commerce executive vice president for government affairs R. Bruce Josten said in a statement.

While there are no immediate plans to reintroduce legislation to repeal the measure, Johanns remains committed to finding a resolution, an aide to Johanns told CNNMoney.

The next effort might get a boost if the White House chooses to make it a priority.

Earlier this month, one day after after suffering a "shellacking" in the congressional election, Obama announced that he would support repealing the measure in the spirit of helping the business community. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Questions & Answers



QHow does a florist sell more in this economy? We changed our business to designing weddings and events only, as the everyday flowers are not selling. We had to throw out too much product at the end of the week -- flowers are perishable! More
Get Answer
- The Flower Lady, Suwanee, Ga.
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.08%4.12%
15 yr fixed3.23%3.21%
5/1 ARM3.46%3.30%
30 yr refi4.14%4.12%
15 yr refi3.28%3.21%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:

Sections

In the last five years, pumpkin sales have risen 34% as people demand pumpkin in everything from beer to beef jerky. More

Facebook's chief product officer issued an apology to Sister Roma and the drag community on Wednesday for its flawed 'real name' policy. More

New York City launches a comprehensive site for all things related to its digital tech scene, Digital.NYC. More

For these seniors, the best retirement is not to retire. From a 102-year-old Wal-Mart worker to an activist park ranger, these workers have stayed on the job well into their golden years. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.