New IRS Paperwork Requirement Must Be Repealed
September 7, 2010
by Webmaster
New IRS Paperwork Requirement Must Be Repealed
Last week President Barack Obama emphasized once again the importance of doing everything possible to aid small businesses in jump-starting the U.S. economy. We agree, and that is why we are speaking out about a very disturbing part of the Health Care Reform Bill that has nothing to do with health care and everything to do with small business. It is Section 9006, which would place an unprecedented burden on small business reporting and paper work requirements.
This provision would require any business that purchases more than $600 of goods or services from another business to submit a 1099 tax form to the Internal Revenue Service. The mandate, which is to take effect in 2012, was included to help pay for the health care bill and was estimated to raise $17 billion.
At a time when President Obama and everyone else agrees that our economy needs small businesses to help our country grow out of this recession, saddling them with expensive new paperwork requirements only further hampers their ability to succeed and ultimately aid in our economic recovery. H.R. 5141 and S. 3578, the "Small Business Paperwork Mandate Elimination Act" would repeal this section of the "Patient Protection and Affordable Care Act."
Unless Section 9006 is repealed, businesses across the United States will be subjected to data collection and information filing on virtually all business-to-business transactions. This regulation will force small businesses to divert precious time and resources to collect volumes of information and fill out mounds of new paperwork for the government.
This new regulation will not only be expensive for small businesses and start ups, but also may make it harder for them to conduct business at all. In addition, Section 9006 may encourage larger businesses to reduce the number of vendors they work with, which would put smaller contractors at a real disadvantage.
While this provision may generate some additional revenue for government, the cost to small businesses will be overwhelming. For these reasons, the Los Angeles Area Chamber of Commerce urges Congress to repeal Section 9006 through the passage of the Small Business Paperwork Mandate Elimination Act (H.R. 5141 and S. 3578).
And that's The Business Perspective.
Comments
As I understand the issue, I will have to file a 1099 on Staples for the materials I buy throughout the year, on our computer support tech rep, the DWP and heaven only knows how many other suppliers I pay over $600 per year. This is utter insanity!
CALCPA society and AICPA is already raised voices and testify on the hill to get this replead. I am glad civic organizations are taking notice also.
Leave a Comment
Comments submitted are subject to review by the Los Angeles Area Chamber of Commerce prior to posting. The Chamber reserves the right to monitor and withhold comments that include personal, offensive, potentially libelous or copyright protected language, materials or links. Only comments relevant to the topic will be posted. Comments posted must have a valid email address. View our full terms & conditions.