Wednesday, September 22, 2010

Repeal the New 1099 Requirements Now!

Embedded with the recent healthcare legislation was a misdirected effort to raise $17B in revenues over ten years by burdening small businesses with an onerous reporting requirement that according to the National Small Busines Association (NSBA) would increase the average number of required 1099s a small firm would need to file from 10 to 86! The new rules, set to go into effect for 2012 purchases, would require a 1099 report for "any purchase from a vendor of goods or services worth $600 or more during the calendar year".

The Senate recently failed to repeal this requirement. Several new efforts in both the House and Senate are directed at redressing this matter. Of particular note:
Rep. Dan Lungren (R-CA) is sponsoring the Small Business Paperwork Mandate Elimination Act (H.R. 5141), that would fully repeal the reporting requirement, but does not offset the lost revenue.

Sen. Mary Landrieu (D-LA), Chair of the Senate Committee on Small Business and Entrepreneurship, is sponsoring the Information Reporting Modernization Act of 2010 (S. 3783), which would raise the threshold for businesses to file information reports to $5,000 from its current level of $600 and would index the threshold to inflation after 2012. Unlike a similar recently failed amendment to the small business bill (S. Amdt. 4595 to H.R. 5297), offered by Sen. Bill Nelson (D-FL), Landrieu's proposal would not exempt businesses with fewer than 25 employees and does not include an offset to pay for the change.

Perhaps it's too much to ask, but it'd sure be nice if we could put aside campaign posturing for just a moment and focus on actually taking care of the business of governing! The proposals are out there. How many other politicians will step up to the plate and just swing?

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