Loading ...SBA Chief Counsel Endorses Repeal Of 1099 Requirement
Winslow Sargeant, chief counsel for advocacy for the Small Business Administration (SBA), called for a repeal of the burdensome expanded Form 1099 reporting requirement for small business on November 18.
Testifying before the Senate Small Business and Entrepreneurship Committee, Sargeant endorsed the recently introduced “Small Business Paperwork Relief Act” and commended Senators Baucus and Landrieu for its introduction. The hearing focused on reducing the regulatory and administrative burdens on America’s small businesses.
“The Form 1099 requirement will greatly increase the reporting and recordkeeping burdens on small businesses,” says Sargeant. “We’ve heard strong opposition from small business about the new 1099 requirement, and the message we heard was repeal. I endorse repeal and I commend Senator Baucus and Senator Landrieu on introducing legislation that will remove this burden on American small business.”
Unless the requirements are repealed beginning in 2012, all companies will have to issue Forms 1099 to any individual or corporation from which they buy more than $600 in goods or services in a tax year. The expanded reporting requirement would result in a greater paperwork burden as small businesses would see an increase in the number of Forms 1099 that they are required to file.
At the hearing, Sargeant referenced data from Advocacy’s recently released study, “The Impact of Regulatory Costs on Small Firms.” He indicated that firms with fewer than 20 employees pay $10,585 per employee on average to comply with federal regulations. “The regulatory burden is 36 percent greater on small firms than on their large counterparts. In addition, the cost to small businesses of tax compliance is more than 300 percent greater per employee than the cost to large companies.”
Sargeant has been aggressively advocating for small business since being sworn in as chief counsel for advocacy. In addition to Form 1099, he has been active on a number of issues involving the environment, transportation, labor, safety and health and tax.
The Office of Advocacy of the SBA is an independent voice for small business within the federal government. The presidentially-appointed chief counsel for advocacy advances the views, concerns and interests of small business before Congress, the White House, federal agencies, federal courts and state policymakers. For more information, visit www.sba.gov/advo, or call 202-205-6533.
To view the hearing, click here.
To read the study, “The Impact of Regulatory Costs on Small Firms,” click here.
2 Responses to SBA Chief Counsel Endorses Repeal Of 1099 Requirement
At best we are in a marginal operating mode and if required to comply with this assine reporting in 2012 we will close! It’s as simple as that! Too much OBAMA not enough common sense!
Our company has over 2500 vendors we purchase from each year. The requirement to file a 1099 for all those would be extremely costly.