WASHINGTON, D.C. — U.S. Sen. Johnny Isakson, R-Ga., has co-sponsored legislation that would eliminate a massive new tax reporting burden that small businesses face under President Obama’s recently enacted health care law.

 

“Having run my own small business for over 30 years, I recognize the tremendous burden that federal regulations can have on America’s small businesses,” Isakson said. “This reporting requirement in the health care law is troublesome and unnecessary, and it is just one of the many reasons

I voted against the bill when it came through the Senate. Small businesses make up the heart of the American economy, and we should be enacting policies that strengthen and stabilize our economy, not ones that increase the cost of doing business.” 

 

Specifically, Section 9006 of the new health care law requires business owners to submit a separate 1099 reporting form for every single business-to-business transaction that totals more than $600 in a given year. As a result, small business owners will have to provide 1099 forms for basic businesses expenses, including phone and Internet service, shipping costs and office supplies.

 

Isakson believes these new requirements will substantially increase costs for small businesses as well as put them at a competitive disadvantage with larger companies. The Small Business Paperwork Mandate Elimination Act, S.3578, would repeal Section 9006 of the new health care law.