[Congressional Record Volume 156, Number 148 (Monday, November 15, 2010)]
[Senate]
[Pages S7907-S7908]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself Mr. Begich, Ms. Landrieu, Ms. 
        Stabenow, Mrs. Shaheen, and Mr. Brown of Massachusets):
  S. 3946. blll to repeal the expansion of information reporting 
requirements for payments of $600 or more to corporations, and for 
other purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today, I am introducing a bill to help 
small businesses across America. The Small Business Paperwork Relief 
Act repeals recently enacted information reporting rules.
  Known as ``the 1099 provision,'' these rules would have required 
businesses to file Form 1099 with the IRS to report payments made to 
corporations for goods and certain services with the hope that that 
better information would help the IRS collect more of the taxes that 
are legally owed, and in turn, keep taxes lower for all taxpayers.
  Forms 1099 have been used by the IRS for decades to better track 
income. And in fact, this type of information reporting was proposed by 
the Bush administration to help better keep track of what businesses 
spend and earn, which helps better keep track of what they owe in 
taxes.
  But it has become clear the new rules went too far.
  As I traveled my home state of Montana, I listened to small business 
owners like Darrell Keck, owner of the Dixie Inn in Shelby. Darrell and 
his wife Jeanne run a tight ship, they are hard-working, and they pay 
their taxes. This is just one of many mom-and-pop businesses in Montana 
and throughout the country that told me they do not have the manpower 
or the software to make the new Form 1099 reporting rules work.
  I have listened to small businesses, I have heard small businesses, 
and I am responding to small businesses by offering this bill for full 
repeal of the new information reporting requirements.
  The time and expense for small businesses to comply with the new 
rules far exceed any benefit. Especially in these tough economic times, 
now is not the time to put additional stress on small businesses to 
meet complicated government rules. Small business is the backbone of 
the American economy--especially in Montana where more workers are 
employed by small businesses than anywhere else in the country. 
Business owners need to focus their efforts on growing their business 
and creating jobs--not filing paperwork.
  As Chairman of the Senate Committee on Finance, I remain committed to 
improving tax administration and enhancing voluntary tax compliance. 
When each person pays what he owes, our nation's system of voluntary 
tax compliance is fairer for everyone--without raising taxes on anyone. 
I look forward to working collaboratively with the small business 
community to improve the ability of small businesses to understand and 
meet their tax obligations.
  Small businesses in Montana and all across America want to comply 
with the tax laws. But these new rules stretched their ability to do 
that. I urge my Colleagues to support their full repeal.
  Mr. President, I ask consent that the text of the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3946

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page S7908]]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Paperwork 
     Relief Act''.

     SEC. 2. REPEAL OF EXPANSION OF INFORMATION REPORTING 
                   REQUIREMENTS.

       Section 9006 of the Patient Protection and Affordable Care 
     Act, and the amendments made thereby, are hereby repealed; 
     and the Internal Revenue Code of 1986 shall be applied as if 
     such section, and amendments, had never been enacted.
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