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Congress Urged to Scrap New Form 1099 Reporting Requirements


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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.

Implemented as part of the recently enacted health care reform law (Pub. L. No. 111-148 as modified by Pub. L. No. 111-152), the new rules require all businesses to report purchases totaling $600 or more with any vendor every tax year. According to the Joint Committee on Taxation, the provision, which is slated to go into effect in 2012, would raise $17.1 billion through 2019.

“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.”

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