Failure to repeal 1099 makes tax compliance more burdensome for small businesses
The Senate's failure to approval the repeal of Form 1099 will make tax compliance more cumbersome for small businesses across the country, according to the Small Business Administration. Form 1099, which must be filled out by vendors for purchases of $600 or more, has been criticized for levying an unnecessary amount of paperwork that will require added time and costs from small business owners.
The form is part of the comprehensive healthcare overhaul and compliance is set to begin in 2012. Recently, however, there has been a push to repeal the form and relieve small business of greater costs.
“The unintended consequence of a potential paperwork burden resulting from this provision quickly came to light, and we immediately began working with the Administration to reduce the burden of these potential future reporting requirements,” Karen Mills, SBA administrator, wrote in an open letter.
Millis stated that repealing the Form 1099 tax compliance would have no adverse effect on the access to healthcare under the Affordable Care Act, according to BusinessNewsDaily.com.
Small businesses currently fill out an average of 10 Form 1099s per year, but that average could jump to 86 under the new tax compliance laws, said Larry Nannis, charmain of the National Small Business Association said in an open letter.
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