WASHINGTON, DC – U.S. Senator Pat Roberts today praised Senate passage of a bill that repeals Obamacare's 1099 reporting requirement for small businesses included in the new health care law, eliminating a costly and burdensome paperwork requirement.

“I am pleased Congress has voted to repeal this time-wasting mandate that would have unduly burdened our country’s small businesses,” said Roberts. “I have heard from business owners throughout Kansas who are worried about the cost and compliance burden of the new 1099 requirement. This repeal is a common sense fix to relieve our small businesses from further bureaucratic red tape, and will help support our nation’s job creators at a time we need it the most.”

This provision of the health care law requires businesses, farms, tax-exempt organizations, as well as state and local governments to submit a separate 1099 reporting form for business-to-business transactions that total more than $600 in a given year. This includes everyday purchases such as shipping costs, supplies, internet and phone services. Since smaller companies would have to fill out additional 1099 forms for each vendor, it may cause businesses to reconsider working with smaller businesses as vendors.

The requirements under this provision would have impacted as many as 40 million businesses nationwide. The National Taxpayer Advocate has estimated the IRS will be unable to process the increased amount of paperwork and enforce this new requirement.

Earlier this year, Senator Roberts joined Senator Mike Johanns (R-NE) who introduced the Small Business Paperwork Mandate Elimination Act, which repeals the 1099 reporting mandate included in Section 9006 of the Patient Protection and Affordable Care Act (PPACA), the new health care law. Senator Roberts was also an original cosponsor in the last Congress.

“While we have won the battle over this provision, this is just the first step in dismantling Obamacare and overhauling the entire system to make it better and more affordable for Kansans and all Americans,” said Roberts.

The repeal passed the Senate by a vote of 87 to 12. It now heads to the president’s desk to be signed into law.

Senator Roberts voted against the PPACA and is a member of the Senate Committee on Finance. He is the Co-Chairman of the Senate Rural Health Caucus.

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