The Small Business Paperwork Mandate Elimination Act, re-introduced on Jan. 5 by Rep. Dan Lungren (R-Calif.), would eliminate a provision requiring firms to fill out 1099 forms to report payments of as little as $600 from any vendor, starting in 2012.
The reporting would help identify an estimated $17 billion in taxes, but companies say it would require extra accounting costs and more paperwork. For example, if a small business bought a new iMac from the Apple Store, it would have to send Apple a 1099.
Late last year, Democrats and Republicans in Congress could not reconcile competing proposals to repeal the provision because they included different ways to pay for the $17 billion in lost revenues from the unpopular provision.
Meanwhile, the IRS has said it would work with businesses and hold hearings to make sure the law wouldn’t be implemented in an onerous way.
Read the Los Angeles Times report on healthcare reform.
Read more coverage on the tax-reporting mandate:
– Senate Rejects Repeal of Reform’s 1099 Tax Reporting Mandate
– Senate Fails to Pass Bills to Soften, Repeal Tax Provision in Reform Law
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