There are a good many installing security contractors, along with so many other small business owners across the nation, who have been alarmed about a certain IRS 1099 reporting mandate.
The unpopular tax-reporting requirement was approved in 2010 as part of President Obama’s health care reform act. In a nutshell, beginning in 2012 business owners will have to use 1099 IRS tax forms to report all transactions greater than $600. The objective is to track more money owed in taxes, which would be used toward the cost of implementing the health-care law.
The provision has infuriated trade organizations and business owners who assert the rule would create an avalanche of paperwork for small firms. Even Obama called for the measure to be revoked in his State of the Union Address in January.
Just in time for the weekend, the latest development surrounding the IRS requirement may bring a smile to your face: On Thursday the U.S. House of Representatives approved the “Small Business Paperwork Mandate Elimination Act of 2011 [H.R. 4].”
The House vote for H.R. 4 follows on the heels of the Senate’s approval in February to also do away with the reporting requirements. So with the White House, Senate and House all in harmony, it’s bye-bye IRS 1099 reporting mandate, right?
Not so fast.
The details are too many to hash out here, but suffice to say this will be no slam dunk. Why? Because hanging in the balance is the implementation of the wider health-care law. Read: Senate Democrats are loathe to approve the House version of the 1099 repeal.
Even though lawmakers on both sides of the political aisle agree the measure should be abolished, the repeal serves as a proverbial line drawn in the sand. Neither party wants to relent and hand over a political victory on a silver platter to their rival.
Much political wrangling and posturing will have to play out before this ever gets resolved. You can expect developments to be reported here as they warrant.
Rodney Bosch | Managing Editor
IRS 1099 Reporting Mandate
Commenting is not available in this channel entry.