We are beginning to get a lot of attention to the requirement that all businesses that purchase $600 or more from a provider of goods and services fill out a 1099 form. HR 5141 by Congressman Lungren, which repeals this requirement, now has about 100 cosigners. I believe they are all Republican.
In the Senate 12 Democratic Senators have sent a letter to Commissioner Douglas Shulman at the IRS to make revisions to the requirement saying it “may negatively impact day to day operations of American businesses, especially small businesses” The letter also points out and concludes by saying:
“we insist the IRS develop ways in which small businesses can reduce expected paperwork from this requirement-possibly through consolidating existing forms, for example-and that the IRS report its proposed solutions to the Senate Committee on Small Business and Entrepreneurship prior to implementation of the new law”
Those signing the letter are Senators Begich, Ben Nelson, Shaheen, Bayh, Johnson, Stabenow, Murray, Merkley, Brown, Franken, Klobuehar and Bennet.
I have been in contact with Senator Boxer’s office and the Senator is also looking to do something on this.
We have to keep the pressure on. See below.
On Friday the Sacramento Business Journal will be holding its annual health care breakfast. The topic will be health care reform. I will be a panelist giving the small business perspective. This is the 6th presentation around the state I have given on this subject. One question I have been asked to address is:
“If you are a small business owner and already offer health coverage to employees how will health care reform affect you? What would be the most cost effective approach-as well as the best move for your employees-as far as health care coverage? “
I would appreciate your comments on this.
Small Business California
2311 Taraval Street
San Francisco, CA 94116
Subject: 1099 CHANGES AFOOT from Politico Pulse
1099 CHANGES AFOOT - Momentum is swinging toward altering the so-called 1099 provision in the reform law, which requires small businesses to file a 1099 form for every company from which they buy more than $600 in good and services. The Treasury department is aware of the business community's concerns that the provision is potentially burdensome and recently asked for formal comments on how to limit it. Four Democratic senators have asked Treasury to look into the problem and several Republicans have signed on to an amendment from Sen. Johanns to repeal the whole provision.
Drafters had hoped the provision would generate $17 billion to help pay for reform. But James Gelfand, director of health policy at the U.S. Chamber of Commerce, says he's rarely seen an issue on which members are so strongly united in opposition, calling them "apoplectic" over the provision. An administration source tells Pulse that the comments from the business community are "obviously something we take seriously" and that there's been significant outreach to them. Treasury has already made one change: Transactions on credit and debit cards won't have to reported on a 1099.