Well, we are at it again. Supporting another legislative measure to repeal the nightmarish and much reviled 1099 reporting mandate in the new health care law.
SBE Council sent a KEY VOTE letter today to all U.S. Senators urging their support for the Johanns Amendment (#161) to the small business research legislation that is being debated in the Senate. The amendment will repeal Section 9006 of the Patient Protection and Affordable Care Act (PPACA) – a reporting mandate that will vastly increase costs and paperwork burden, while compelling small business owners and individuals to devote significant time and resources on tedious compliance tasks rather than productive work.
SBE Council will KEY VOTE the Johanns Amendment for our Small Business Ratings of the 112th Congress. A vote for the amendment is a vote for our nation’s entrepreneurs.
Another amendment offered by Senator Menendez may also be considered. This merely studies the issue, which would prolong uncertainty and force small business owners to expend resources in preparation for potential compliance in the future. Small business owners oppose anything less than complete, immediate and certain repeal of Section 9006 of the PPACA. Therefore, SBE Council will KEY VOTE the Menendez amendment as a vote against small business.
As SBE Council noted in our letter to all U.S. Senators:
"The expanded 1099 reporting provision in the PPACA mandates that small business owners file a 1099-MISC to the Internal Revenue Service (IRS) for all payments made to vendors totaling $600 or more in a tax year. Does it really take a government study to understand the obvious burden this will place on small business owners?
"As the SBA Office of Advocacy has found in its research, small firms are disproportionately impacted by federal regulation. In the case of tax compliance, these costs are 67 percent higher for small firms than for larger businesses.
"SBE Council surveys of member companies found that the mandate will increase the paperwork burden by more than 1000 percent for some firms, while accounting costs will double and quadruple in many cases. Business owners report that they will cut jobs, raise prices and be forced to devote more of their personal time to mind-numbing paperwork, which means their energy, passion and expertise will not be focused on growing their firms."
There may be a chance that the Senate moves to "deem passed" the House-passed bill (H.R. 4), which also repeals expanding 1099 reporting on rental property that was included in the "small business jobs act" passed in September of last year. This would be fabulous, as the legislation would then quickly move to the President's desk for his signature.
Let's repeal this thing!
Karen Kerrigan, President & CEO
Showing posts with label exanded 1099 reporting and small business. Show all posts
Showing posts with label exanded 1099 reporting and small business. Show all posts
Wednesday, March 30, 2011
Friday, September 10, 2010
Senate Showdown Vote to Fully Repeal Expanded 1099 Reporting Mandate
SBE Council joined over 130 small business organizations in signing a letter to all U.S. Senators urging that they vote for the ONLY solution to fix the massive new paperwork mandate that was slipped into the new health care law (Patient Protection and Affordable Care Act). A vote to repeal this costly and expansive 1099 reporting mandate is expected to occur on September 14 in the U.S. Senate as an amendment to the "Small Business Jobs and Credit Act of 2010."
The Johanns Amendment (#4596) would fully repeal the nightmarish paperwork mandate. The Nelson Amendment (#4595) does not remove the massive paperwork burden required by the new law, and in fact could make it more complex and costly for small business. Our position, as outlined by the Coalition for Fairness in Tax Compliance letter below, has been transmitted to all Senators.
As Congress calls on small business to lead the nation out of the recession, now is not the time for government-imposed costs on doing business. The extent of this new paperwork requirement on business owners is astounding, as businesses estimate that they will have to file hundreds and sometimes thousands of new 1099s per year. The IRS National Taxpayer Advocate Nina Olson stated that the administrative costs of small businesses are so high that it “may turn out to be disproportionate as compared with any resulting improvement in tax compliance.” The Johanns Amendment is the only solution that fully protects small business owners from this costly new burden.
The Nelson (FL) Amendment (SA 4595) does not remove the paperwork and administrative burden that is created by this new law. Instead, the Nelson alternative further complicates compliance responsibilities. While the amendment creates exceptions from the “property” information return requirements, those exceptions do not apply to “services” transactions. This lack of clarity will force small business owners to track expenses associated with both “property” and “services,” the amount spent on each, and the method of payment to determine what information must be reported under the new law. Rather than clarify, the Nelson amendment actually creates even greater complexity for those who comply with the law.
The Nelson Amendment gives the IRS the authority to create a list of reportable and non-reportable transactions, but this unleashes a minefield of potential mistakes and unanswered questions. Small businesses lack the book-keeping resources or capabilities to determine whether or not they have to report the transaction – and adding administrative costs takes time and money away from actually running the business. While PPACA created a new and overwhelmingly burdensome paperwork mandate, the Nelson alternative adds an additional layer of confusion to this already complex requirement.
We urge you to pass the Johanns Amendment and oppose the Nelson Amendment. Full repeal of the new 1099 requirement is the only solution that will relieve small businesses of the cost and confusion created by this new burden.
SBE Council will KEY VOTE this important vote. Please call your U.S. Senators at 202-225-3121 and urge that they vote for the Johanns amendment -- vote for FULL repeal of the expanded 1099 reporting requirement.
Karen Kerrigan, President & CEO
The Johanns Amendment (#4596) would fully repeal the nightmarish paperwork mandate. The Nelson Amendment (#4595) does not remove the massive paperwork burden required by the new law, and in fact could make it more complex and costly for small business. Our position, as outlined by the Coalition for Fairness in Tax Compliance letter below, has been transmitted to all Senators.
As Congress calls on small business to lead the nation out of the recession, now is not the time for government-imposed costs on doing business. The extent of this new paperwork requirement on business owners is astounding, as businesses estimate that they will have to file hundreds and sometimes thousands of new 1099s per year. The IRS National Taxpayer Advocate Nina Olson stated that the administrative costs of small businesses are so high that it “may turn out to be disproportionate as compared with any resulting improvement in tax compliance.” The Johanns Amendment is the only solution that fully protects small business owners from this costly new burden.
The Nelson (FL) Amendment (SA 4595) does not remove the paperwork and administrative burden that is created by this new law. Instead, the Nelson alternative further complicates compliance responsibilities. While the amendment creates exceptions from the “property” information return requirements, those exceptions do not apply to “services” transactions. This lack of clarity will force small business owners to track expenses associated with both “property” and “services,” the amount spent on each, and the method of payment to determine what information must be reported under the new law. Rather than clarify, the Nelson amendment actually creates even greater complexity for those who comply with the law.
The Nelson Amendment gives the IRS the authority to create a list of reportable and non-reportable transactions, but this unleashes a minefield of potential mistakes and unanswered questions. Small businesses lack the book-keeping resources or capabilities to determine whether or not they have to report the transaction – and adding administrative costs takes time and money away from actually running the business. While PPACA created a new and overwhelmingly burdensome paperwork mandate, the Nelson alternative adds an additional layer of confusion to this already complex requirement.
We urge you to pass the Johanns Amendment and oppose the Nelson Amendment. Full repeal of the new 1099 requirement is the only solution that will relieve small businesses of the cost and confusion created by this new burden.
SBE Council will KEY VOTE this important vote. Please call your U.S. Senators at 202-225-3121 and urge that they vote for the Johanns amendment -- vote for FULL repeal of the expanded 1099 reporting requirement.
Karen Kerrigan, President & CEO
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