For Release: February 18, 2011
Washington, D.C. – The Financial Planning Association® (FPA® ) commended the U.S. House Committee on Ways and Means for voting on Thursday to repeal the expanded 1099 information reporting requirements that were included in last year’s health care reform bill.
“FPA is pleased that the Ways and Means Committee is addressing this issue. The expanded 1099 requirement will greatly increase the reporting and recordkeeping burden on all types of businesses. This burden could be twofold on FPA members as they are financial planners who serve small businesses and, in many cases, are small businesses,” said FPA executive director and CEO Marvin W. Tuttle, CAE. “We look forward to working with members of Congress to repeal this cumbersome requirement before it becomes effective next year.”
Without action, the expanded information requirement becomes effective in 2012 and will require any taxpayer with business income to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services annually. According to the IRS' National Taxpayer Advocate, over 38 million taxpayers will be affected and that the resulting administrative burden would be far outweigh the value of the information for the IRS.