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Friends:
Every day, I hear from entrepreneurs who are frustrated by the government’s plan to impose more regulations on their businesses. Just last month, the Small Business Administration’s Office of Advocacy reported that small firms pay nearly $3,000 more per employee than larger firms to comply with federal regulations. And this data didn’t even take into account the tidal wave of regulations that business owners will soon face.
One of the biggest new regulations on employers’ minds these days is the 1099 reporting requirement that was included in the health care law. As you know, this mandate would require every business to file a 1099 form for each purchase of goods or services of $600 or more per year from another entity. This rule will undoubtedly increase costs and paperwork, but no one knows how the Internal Revenue Service (IRS) plans to enforce it or whether the IRS plans to help small business owners with compliance.
For several months now, I have been trying to contact IRS Commissioner Douglas Shulman about the planned implementation of the 1099 reporting rule. Back in June, I joined Members of the House Small Business Committee in sending Commissioner Shulman a letter that expressed our concerns about the mandate and requested information. After waiting more than three months for a reply, I sent the Commissioner a follow-up letter in early October. I regret to inform you that neither the Commissioner nor his aides have responded to these efforts. However, you can rest assured my Republican Small Business Committee colleagues and I will continue to press the IRS for answers as we fight this job-killing reporting requirement.
Sam Graves
Ranking Member
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