April 5, 2011
1099 Repeal Legislation Passes Senate in Landslide Vote; Moves to President’s Desk
The “Small Business Paperwork Mandate Elimination Act,” H.R. 4, legislation long trumpeted by the National Shooting Sports Foundation (NSSF) – the trade association for the firearms industry – has passed out of the United States Senate by a vote of 87-12 without amendment. This legislation will now move to the president’s desk for signature.
NSSF fully supports repealing the 1099 reporting requirement because it will help protect firearms retailers and gun owners who would otherwise be forced to provide 1099 forms to vendors from whom they buy goods totaling $600 or more annually. This new tax reporting requirement is scheduled to take effect in 2012. Small businesses would need to issue hundreds or even thousands of forms each year, track cumulative payments to vendors and obtain tax identification information from each vendor. The “vendor” could be a gun owner who sells her used firearm to a retailer.
NSSF is calling on President Obama, who has expressed his support for repealing this onerous IRS reporting requirement, to sign H.R. 4 into law immediately.