NAHB Lobbies for Scrapping of New 1099 Rules

Washington, DC, Feb. 10, 2011 -- The National Association of Home Builders has called on Congress today to repeal all new expanded 1099 reporting requirements imposed in the healtcare reform law.

Testifying on behalf of NAHB before the House Small Business Committee, Mike Kegley, a builder from Union, Ky., and president of the Home Builders Association of Kentucky, told lawmakers that the collection of W-9 forms, monitoring payments over the course of a year, and additional staff time will cost individual small businesses thousands of dollars per year.

Under the Patient Protection and Affordable Care Act approved last year, starting in 2012 businesses will have to file an IRS Form 1099 for each vendor from whom they spend more than $600 in goods or services in any given tax year.

Kegley, who built six homes last year and employs seven workers, said his firm would have had to file an additional 173 forms for 2010 had the law been in effect.

"It would have cost my company $6,400 to obtain and catalog the W-9 forms and $2,600 to generate the additional Form 1099s, for an estimated total of $9,000," he said.