IDFA Joins in Call to Repeal 1099 Reporting Mandate
The International Dairy Foods Association is joining more than 1,000 organizations and businesses throughout the country calling for the repeal of a reporting mandate, including the new healthcare law.
According to a letter from IDFA to Congress, the mandate would saddle companies, non-profits and government entities with onerous data-collection requirements and expenses. IDFA encourages all members to send letters requesting the repeal to their senators.
The provision, scheduled to become effective in 2012, would require firms of all sizes to send the Internal Revenue Service a 1099 form for every vendor transaction of more than $600. It is designed to encourage vendors to report all of their income for tax purposes and is expected to raise $17 billion over 10 years. These funds would be used to help pay for costs incurred under the new “Patient Protection and Affordable Care Act.”
“If this provision is implemented, the 1099 reporting mandate will impose substantial paperwork and reporting burdens on the backs of governments, non-profits and businesses, especially small businesses,” states the letter, created by the U.S. Chamber of Commerce. “This provision will also serve to dramatically increase accounting costs, expose businesses to costly and unjustified audits by the IRS and subject more small businesses to the challenges of electronic filing. In the end, the increased costs will heavily penalize honest taxpayers.”
Instead, many business groups, including IDFA, support an amendment proposed by Senator Mike Johanns (R-NE) that would repeal the mandate and redirect a portion of the funds in the new law to preventive care. Others legislators are proposing their own amendments and are scheduled to be voted by the Senate in the near future.
According to a letter from IDFA to Congress, the mandate would saddle companies, non-profits and government entities with onerous data-collection requirements and expenses. IDFA encourages all members to send letters requesting the repeal to their senators.
The provision, scheduled to become effective in 2012, would require firms of all sizes to send the Internal Revenue Service a 1099 form for every vendor transaction of more than $600. It is designed to encourage vendors to report all of their income for tax purposes and is expected to raise $17 billion over 10 years. These funds would be used to help pay for costs incurred under the new “Patient Protection and Affordable Care Act.”
“If this provision is implemented, the 1099 reporting mandate will impose substantial paperwork and reporting burdens on the backs of governments, non-profits and businesses, especially small businesses,” states the letter, created by the U.S. Chamber of Commerce. “This provision will also serve to dramatically increase accounting costs, expose businesses to costly and unjustified audits by the IRS and subject more small businesses to the challenges of electronic filing. In the end, the increased costs will heavily penalize honest taxpayers.”
Instead, many business groups, including IDFA, support an amendment proposed by Senator Mike Johanns (R-NE) that would repeal the mandate and redirect a portion of the funds in the new law to preventive care. Others legislators are proposing their own amendments and are scheduled to be voted by the Senate in the near future.
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