Monday, July 12, 2010

1099 requirements/ Small Business Lending

We all recognize the serious burden small businesses will face in 2012 when they will be required to file 1099s for anyone that provides you goods and services with a value of over $600. Please see below email from Congressman Lungrens office. I talked to Kevin and Alex and they asked for your help.

Note your comments must be in by September 29th.

Today Fed Chair Ben Bernanke announced that ways must be found to help small businesses with getting loans. There is legislation in Washington that will do this but it is tied up due to ideological bickering. So if the legislation doesn’t pass what can be done.

I don’t know about you but it getting tiring to hear that we create the jobs and are the engine of the economy yet nothing seems to happen in Washington to help solve the problem.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

From: Holsclaw, Kevin []
Sent: Wednesday, July 07, 2010 9:05 AM
To: Scott Hauge
Subject: FW: HR 5141 / IRS Comments 499


We obtained this information and I wanted to make sure that you were aware of it. We obviously are fully committed to fight for the repeal of this provision. At the same time our interest has always been a concern for small business and to make sure that we get the information out there to the affected parties.

Alex Snyder (in our office) and I will try to call you today. Again, thank your hard work on this issue.

Best Regards,

Kevin Holsclaw
L.D., Cong. Lungren

From: Snyder, Alexandra
Sent: Wednesday, July 07, 2010 12:02 PM
To: Holsclaw, Kevin
Subject: HR 5141 / IRS Comments 499

Dear Friend,

As you are no doubt aware, the health care reform bill passed by Congress in March of this year will have many implications for your business. Hidden within the bill’s 1200 pages is a short provision that will expand the form 1099 reporting requirement. Currently, business owners are required to file 1099 forms for non-corporate services. However, under the Patient Protection and Affordable Care Act (PPACA), the 1099 reporting requirement will be expanded to include businesses transactions, corporate and non-corporate, involving goods and services totaling more than $600 in a given year. This means filing 1099’s for such basic business expenses as phone and internet service, shipping, office supplies, maintenance and travel, not to mention all of the component parts of a particular product.

This provision is especially onerous for small business owners, many of whom are responsible for preparing their own tax documents. Some of my constituents have told me that instead of filing a handful of 1099 forms, as they do now, the PPACA will require them to submit hundreds of 1099’s.

In April, I introduced legislation to repeal this expanded tax reporting mandate. In my view, it simply does not make sense to impose yet another tax burden on small business owners, who provide much-needed jobs for Americans. My bill, H.R. 5141, has received widespread support from Members of Congress as well as from numerous business associations across the nation. I recently received a letter of support from an organization representing more than 70,000 small business owners in California.

The Internal Revenue Service is currently evaluating how to implement the 1099 expansion under the health care bill. The IRS has invited the public to comment on its proposal to exempt credit or debit card transactions from the new reporting requirement. I would encourage you to submit your comments to the IRS by e-mail or “snail mail,” as follows:

E-mail to: Include “Notice 2010-51" in the subject line.

Mail to:

Internal Revenue Service,
CC:PA:LPD:PR ( Notice 2010-51),
Room 5203, P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

The deadline is September 29, 2010.

Further details are available at

If you have any questions regarding the new 1099 filing requirement, please feel free to contact my Washington, D.C. office at 202.225.5716.

Dan Lungren

Alexandra Snyder
Legislative Counsel
Office of Congressman Dan Lungren
2262 Rayburn House Office Building
Washington DC 20515
O: 202.225.5716
F: 202.226.1298

No comments: