Sign "The Petition to Repeal Section 9006" Take Action! It's scheduled to start in 2012, but we can stop the madness now! Please help SBE Council repeal a measure in the new health care law that vastly expands 1099-MISC reporting requirements! [Sign the petition to "Repeal Section 9006" - the expanded 1099 reporting mandate in the new health care law -- by clicking here!] What is the new paperwork mandate? Small business owners are familiar with form 1099-MISC and its reporting requirements. The newly expanded reporting mandate, however, takes the current burden to new and unthinkable levels! Section 9006 of the "Patient Protection and Affordable Care Act" (Public Law No. 111-148) mandates that small business owners file a 1099-MISC with the Internal Revenue Service (IRS) for payments made to vendors totaling $600 or more in a tax year. That's right every business transaction totaling $600 or more on an annual basis will now require a 1099. Get ready to track down all those TINs (Taxpayer Identification Numbers)! In turn, small business owners will receive a 1099 from each business that they sold goods or services totaling $600 or more, which will be used to report such income on their annual tax return. Section 9006 of the new health care law has nothing to do with health reform, affordability or quality coverage. It was inserted into the "Patient Protection and Affordable Care Act" as a way to pay for the massive health care bill. However, there is no clear research or data to substantiate the degree to which expanded 1099 reporting will close the so-called "tax gap." And no one really understands how the federal government will deal with the millions upon millions of 1099 forms that will flood IRS offices! The effects of this burdensome new paperwork mandate on small businesses are quite clear. New headaches, more costs, more time and manpower -- and for what? The expanded 1099-MISC requirement will be a nightmare for small businesses. As the SBA Office of Advocacy has consistently found in its research, small firms are disproportionately impacted by federal regulation - and in the case of tax compliance, these costs are 67 percent higher for small firms than for larger businesses. But for larger businesses, administrative costs and burdens will be staggering as well. Imagine all the 1099s office supply stores will receive from small business owners. Imagine the back-office policies, procedures and new staff they will need to accurately capture and store data from these tens-of-thousands, if not millions, of forms. Do you think their costs will increase? Will our supply prices go higher? Now, imagine the economy-wide impact! What about the potential errors in typing or transcribing nine-number TINS? PLEASE SIGN "THE PETITION TO REPEAL SECTION 9006" by clicking HERE What else can you do?Legislation has been proposed in Congress to repeal this misguided requirement. The "Small Business Paperwork Mandate Elimination Act" has been introduced in the U.S. House by Rep. Dan Lungren (R-Calif.), and in the U.S. Senate by Senator Mike Johanns (R-Neb). The bill numbers are H.R. 5141 in the House, and S. 3578 in the Senate. (Read SBE Council's letter to Rep. Lungren endorsing H.R. 5171 by clicking here, and a letter to Senator Johanns endorsing S. 3578 by clicking here. A press release can be found here.) Take Action! - Contact your Representative in the U.S. House: Is your member of the U.S. House of Representatives a co-sponsor of the legislation to repeal this onerous mandate? Click here to find out (look under "show co-sponsors"). If he or she is not on the bill, call them at 202-225-3121 and demand that they co-sponsor H.R. 5141! If they care about small business, they will support this legislation.
- Contact your U.S. Senators: Are your U.S. Senators co-sponsors of the legislation to repeal the mandate? Click here to find out (look under "show co-sponsors). If they are not, please call them at 202-224-3121 and demand that they co-sponsor S. 3578! If they care about small business, they will support this legislation.
- Sign the Petition: Sign "The Petition to Repeal Section 9006" and forward it to all of your colleagues, friends, family members and neighbors.
- File Comments with the IRS: The IRS has opened a formal comment period where the agency is taking public comments on how the expanded 1099 reporting requirements should be implemented. For example, the IRS asks for "Specific comments...regarding the burden associated with implementing the new reporting requirements for different types of taxpayers and businesses." (Please click here for additional information.) Please let them know how burdensome this new mandate will be for your business. You can send your comments via email to: Notice.Comments@irscounsel.treas.gov. Include "Notice 2010-51" in the subject line.
- Contact President Obama: The President says he reads letters from small business owners "every day." Please send a message to President Obama at the White House by clicking here.
Contribute to SBE Council! We need your financial support to fully repeal this nightmarish mandate. No amount is too small! Your contribution will help us collect the half-million signatures we've established as a goal for the petition; conduct media outreach; activate SBE Council members and other small business owners; and advocate on your behalf before Congress and the White House. Please support SBE Council today! Finally, please report back to us regarding your conversations with Members of Congress or their staffs. Any and all feedback and intelligence is greatly appreciated. Email us your report at: membership@sbecouncil.org. Working with you and hundreds of thousands of small business owners we can do this! We can repeal Section 9006 of the new health care law! Thank you! Karen Kerrigan, President & CEO |
