Speaking to reporters yesterday, the head of the Small Business Administration (SBA) said that her agency supports a full repeal of the 1099 provision contained in the health care law.  Beginning next year, all employers must report all payments over $600 to all vendors in a calendar year by completing an IRS Form 1099.  The provision was included in the Patient Protection and Affordable Care Act to collect unpaid taxes on previously unreported income as well as fund the new health care law.

The SBA is a government agency and their opposition to the 1099 requirements signals the opposition of the Obama administration.  Karen Mills, administrator of SBA, indicated on the call that opposition to the 1099 does not mean SBA supports the repeal legislation being voted on in the House today.

“The 1099 reporting requirement that was included in the law creates too big a burden for small businesses, and that’s why we called for a repeal in the requirement,” Mills said.  “We are going to continue to work with Congress to make sure we get that job done.”