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Dairy Facts 2016

IDFA Joins in Call to Repeal 1099 Reporting Mandate

Sep 02, 2010

Joining more than 1,000 organizations and businesses throughout the country, IDFA has signed a letter to Congress calling for the repeal of a reporting mandate included in the new health care law. IDFA believes the mandate would saddle companies, non-profits and government entities with onerous data-collection requirements and expenses.

IDFA encourages all members to send letters requesting the repeal to their senators.

The provision, scheduled to become effective in 2012, would require firms of all sizes to send the Internal Revenue Service a 1099 form for every vendor transaction of more than $600. It is designed to encourage vendors to report all of their income for tax purposes and is expected to raise $17 billion over ten years. These funds would be used to help pay for costs incurred under the new "Patient Protection and Affordable Care Act."

"If this provision is implemented, the 1099 reporting mandate will impose substantial paperwork and reporting burdens on the backs of governments, non-profits and businesses - especially small businesses," states the letter, created by the U.S. Chamber of Commerce. "This provision will also serve to dramatically increase accounting costs, expose businesses to costly and unjustified audits by the IRS and subject more small businesses to the challenges of electronic filing. In the end, the increased costs will heavily penalize honest taxpayers."

Instead, many business groups, including IDFA, support an amendment proposed by Senator Mike Johanns (R-NE) that would repeal the mandate and redirect a portion of the funds in the new law to preventive care. Others legislators are proposing their own amendments, and the Senate is scheduled to vote on these alternatives when it returns next week.

Read the letter here.

IDFA encourages members to send similar letters to their senators. For help or more information, contact Ashley Burch, IDFA assistant director of political programs, at


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