The American Rental Association (ARA) advocates for a full and total repeal of the IRS 1099 reporting provision of the health care reform bill signed into law earlier this year. The “Take action, demand repeal of the 1099 provision” article in the Rental Pulse on Aug. 15 asked ARA members to contact their U.S. senators while they were home during the August recess to tell them to repeal this IRS 1099 reporting provision.

On Sept. 14, the U.S. Senate is going to vote on this measure. On Sept. 7, ARA members will receive an e-mail “Call to Action” along with talking points and a link to contact information for your U.S. senators. The amendment sponsored by Sen. Mike Johanns (R-Neb.) and cosponsored by Sen. Blanche Lincoln (D-Ark.) will eliminate the 1099 reporting provision if successful.

Section 9006 of the Patient Protection and Affordable Care Act requires all businesses to begin issuing IRS 1099 forms to any business that receives goods or services worth more than $600 in a given tax year. Currently, Form 1099 applies to the value of services purchased, but the new law expands this also to goods purchased as well. The reporting requirement also would apply to corporations. It is estimated that unless this section is repealed, 40 million taxpaying entities, including those in the equipment rental industry, will be subject to this provision.

Watch for a “Call to Action” from ARA in your e-mail on Sept. 7, asking you to take the time to contact your senator with your support for a full and total repeal of the IRS 1099 reporting provision.