Headline News

29
Apr 2011

Tax Form 1099 Repeal - Great for Small Business   

I am sure that every Greater Medina Chamber business owner reading this article probably breathed a collective sigh of relief after the President recently signed a bill repealing the overly burdensome 1099 reporting requirement. This additional reporting burden would have been placed on the backs of small business and non-profits as part of last year’s health care reform law. The new law was slated to go into effect January 1st. 

Without repeal, the law would have created a tremendous paperwork compliance burden for all small business owners. This now defunct reporting requirement would have meant that every small business owner would have had to file two forms – one with the vendor and the other to the IRS - for almost every business to business transaction involving more than $600 in a calendar year.  

I find it troubling that the revised Form 1099 requirements were added to the healthcare bill without Congressional hearings, agency advice or public input. Congress did not hold any public hearings and agencies did not have an opportunity to conduct any analysis to evaluate the impact of enacting this kind of requirements on small business.  According to Representative Jim Renacci, “The IRS has even said it is wary of these regulations because the burden on small business may be disproportionate as compared with any resulting improvement in tax compliance.” 

As ill-conceived as the original idea was, the repeal confirms that our legislative system does work.   The voice of the small business owners was heard. I would encourage each and every Greater Medina Chamber member to become involved in the legislative process.  

For the sake of your business, become politically active on issues that are important to you. Regardless of your political party, you must communicate with your elected officials to be effective. We all need to understand what they stand for and where they stand on current issues.   Attend town hall meetings. Write a letter or email. Arrange a meeting at their local office. Give them a phone call. Talk to the staffers. Everyone has a voice! 

For those small business owners who spoke up in favor of repealing this legislation – Thank You! 

Here is how our legislators representing the Greater Medina Area voted in repealing the new reporting requirements: 

Representative Jim Renacci (R) OH-16

Aye

Representative Betty Sutton (D) OH-13

No

Senator Sherrod Brown (D)

Aye

Senator Robert Portman (R)

Aye

President Obama

Signed into Law 4/15/11

 

Posted by Tina Gienger on April 29, 2011 at 1:39 PM
Board of Directors
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