Small Business Finance News
Lawmakers Announce Plans To Repeal 1099 Tax Reporting Provision For Small Businesses
Written by Jenna Weiner
Published: 1/7/2011
Several lawmakers have announced their intentions to fight the new 1099 reporting requirements to remove unnecessary burdens from small business owners.
Healthcare reform and its incumbent regulations have been a constant subject of news for small business owners nationwide, as many provisions are expected to affect companies' bottom lines - both positively and negatively.
One source of ire among owners has been a provision that requires businesses to file a special form with the Internal Revenue System for each payment made to stores, vendors, freelance workers and others for goods or services valued at $600 or more.
As a result, lawmakers are preparing attempts to repeal the provision. California Representative Dan Lungren and Nebraska Senator Mike Johanns have each announced separate plans to introduce legislation to fight the 1099 tax-reporting mandate in the new congressional session.
"Burdening them with expensive requirements and paperwork roadblocks will only further hinder their ability to contribute to our nation's economic recovery," Lungren told the Los Angeles Times.
Johanns added that he hoped a spirit of bipartisanship would prevail. "Telling our business owners and ag producers that we're committed to removing obstacles to their growth would start off the new Congress on the right foot," he said to a group of reporters, the Grand Island Independent reports.
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