SBA Supports Bill to Repeal "Burdensome" 1099 Filing Requirements


The head of the U.S. Small Business Administration called for the repeal of a vast expansion of 1099 filing requirements scheduled to begin in 2012.

 

In an open letter to small business owners, SBA Administrator Karen Mills repeated President Barack Obama’s Nov, 3 statements that the expanded requirement for small businesses to report all transactions greater than $600 is “burdensome,” and adds up to “too much paperwork, too much filing.” The new reporting requirement was included in the Patient Protection and Affordable Care Act, PL 111-148, which was passed in March.

 

Mills said the SBA and the Obama administration support the Small Business Paperwork Relief Act, S 3946, introduced by Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. The measure would repeal the expanded reporting requirement.

 

“The unintended consequence of a potential paperwork burden resulting from this provision quickly came to light, and we immediately began working across the Administration to reduce the burden of these potential future reporting requirements,” Mills said in her letter. She also said the repeal of the 1099 provision “will not adversely affect the [health care reform act].”

 

In letters to members of the House of Representatives and the Senate, the AICPA on Nov. 16 expressed its concerns about the compliance burdens being placed on businesses by the expanded Form 1099 information reporting requirements scheduled to take effect in 2012. The AICPA also pushed for repeal of expanded information reporting related to rental property owners enacted as part of the Small Business Jobs Act, PL 111-240.

 

The letters, signed by Patricia Thompson, CPA, chair of the AICPA’s Tax Executive Committee, urge Congress to repeal both new requirements.

 

More from the JofA:

 

SPONSORED REPORT

Post-busy season checklist

Now that tax season is over, pause for some introspection to guarantee that next year’s busy season is even better. Bonus: “Dirty dozen” scams list to share with your clients. Sponsored by Thomson Reuters, Bloomberg BNA, Bloomberg BNA // Software and Wolters Kluwer.

QUIZ

News quiz: Risks are top of mind in finance

Americans are worried about risks to their financial security. Accountants also see risks to their organizations and their careers. See how much you know about recent news and reports with this quiz.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.