Montana’s senior senator, Democrat Max Baucus, is sponsoring legislation that would reduce new tax reporting requirements including in the health reform legislation that Baucus helped craft.
“I have heard Montana businesses loud and clear, and I am responding to their concerns,” Baucus said in a release Friday.
The provision in the health reform act would require businesses to file form 1099 paperwork with the Internal Revenue Service for every vendor that sells them more than $600 in goods and certain services.
Montana’s sole member in the U.S. House of Representatives, Republican Denny Rehberg, sponsored legislation earlier in the year to do the same.
In July, Rehberg sponsored an amendment to the House Labor, Health and Human Services and Education Appropriations Bill that would have blocked funding for the enforcement of the 1099 provision. That bill currently is stalled and awaiting action by the lame-duck Congress.
In June Rehberg also signed on as a co-sponsor of the Small Business Paperwork Mandate Elimination Act proposed by Rep. Dan Lundgren, R-Calif., in April. That bill would amend the Internal Revenue Code to repeal the health care reform act provision.
Lundgren has filed a petition to move that bill from the House Ways and Means Committee to the floor for debate. Rehberg signed on the petition in support of that motion Sept. 16. The petition now has 136 signatures.
The Associated Press reports that President Barack Obama is interested in changing the provision.
In his release, Baucus said the requirement was proposed by the administration of President George W. Bush., to help better keep track of what businesses spend and earn, which in turn helps better keep track of what they owe in taxes.
Since the passage of the provision, which does not go into effect until 2012, Montana business owners have told him that the paperwork would create a heavy burden, Baucus said.
He said he wants to repeal that provision and look for other ways to improve tax compliance and keep taxes low.
“Montana businesses need to focus their efforts on growing and creating good-paying jobs, not filing paperwork,” Baucus said. “Montana businesses have made clear these reporting requirements won't work for them, and it's my job to fix that. And that is exactly what I'm going to do."