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Friday, July 30, 2010

Help Us Repeal the New 1099 Reporting Nightmare!

SBE Council launched a petition and action center devoted to repealing a nightmarish paperwork mandate that will vastly expand 1099-Misc reporting. Small business owners are outraged by the provision, and we are hearing that you want to know how you can stop it from taking effect in 2012. SBE Council has launched in response.

Sign the Petition to Repeal Section 9006 here.

This expanded 1099 reporting mandate has really gotten under the skin of small business owners, and rightly so. The burden of the new mandate will be tedious, time-consuming, and costly. Business owners across the country are furious that Congress slid the measure in a massive health care bill without understanding its deep impact.

A provision (Section 9006) in the "Patient Protection and Affordable Care Act" signed by President Barack Obama in March mandates that all businesses issue a 1099 form for all vendor payments totaling $600 or more on an annual basis. This new mandate vastly expands current requirements, and is scheduled to begin in 2012. The provision was included in the health care bill as a revenue raiser ($17 billion), but there has been no analysis completed to demonstrate how effective the measure will be at closing the "tax gap."

Obviously, Congress did not think about the unintended consequences of the mandate --whether the IRS, for example, has the capacity to deal with hundreds of millions of new forms from 30 million businesses, or the cost impact for small business owners. The expanded 1099 mandate will have an economy-wide effect as this extensive paperwork burden permeates every business, and every self-employed American.

An action center - -- has been developed by SBE Council. The center shows business owners what they can do to build momentum for repeal. Stop 1099 gives background on the issue; provides details of legislation offered in the House and Senate to repeal the mandate, and how business owners can help move these bills; points to the IRS site where business owners can comment on implementation of the new mandate; and where they can address their concerns to President Obama. Business owners can also sign "The Petition to Repeal Section 9006," and SBE Council hopes to collect one-half million signatures by the time Congress returns from its long summer recess in September.

We have the power to repeal this misguided mandate, but small business owners must become active and make their voice heard. PLEASE sign the petition -- take action with your U.S. House member and Senators, and provide feedback to the IRS. Small business owners must speak loudly in order to advance our repeal efforts!

Karen Kerrigan, President & CEO

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