Backtracking on 1099 Reporting Requirements
Last week Heather M. Rotham published an article Congress Urged to Scrap New Form 1099 Reporting Requirements, in whcih she outlines why it is not a given that new 1099 reporting requirements will go into effect. Previously we did a post here and here on the new 1099 reporting requiremnts.
In her article, Heather outlines the action the US Chamber of Commerce has undertaken to have this piece of legislation reversed.
The U.S. Chamber of Commerce announced Aug. 17 that more than 1,099 companies around the nation have signed a letter to lawmakers asking them to repeal new Form 1099 reporting requirements, calling them burdensome, complex, and very costly.
She also nincludes some of the content of the letter from the U.S. Chamber of Commerce regarding issues we highlighted here and here.
"If this provision is implemented, the 1099 reporting mandate will impose substantial paperwork and reporting burdens on the backs of governments, nonprofits, and businesses-especially small businesses," the companies wrote. "This provision will also serve to dramatically increase accounting costs, expose businesses to costly and unjustified audits by the [Internal revenue Service}, and subject more small businesses to the challenges of electronic filing."
Currently there are at least two proposal for changing the new 1099 reporting requirements. Once lawmakers return from the August recess they will consider changes to the recently passed 1099 reporting requirements as part of H.R. 5297, a small business bill