The Hill: Graves presses IRS for answers on 1099 rule


Washington, D.C. , Oct 5 -

By Jay Heflin; The Hill

House Small Business Committee ranking member Sam Graves (R-Mo.) on Tuesday sent a follow-up letter to Internal Revenue Service (IRS) Commissioner Doug Shulman asking how he plans to implement the 1099 reporting rule included in the new healthcare law that requires businesses and organizations to report all purchases above $600 to the IRS. 

Graves sent a similar letter to Shulman on Jun. 23 and has yet to receive a response.

"I am disappointed that after over three months, I have not received a substantive or even an interim response from you on this issue," Graves writes.

Graves noted in the letter that compliance with the new rule weighs heavy on the minds of his constituents. 

"During the month of August, I traveled to every corner of my congressional district, visiting small businesses and hold town hall meetings. A significant issue of my constituents' minds was the burden and expense of compliance with this new 1099 requirement," he wrote.

The rule was included in the healthcare reform bill to improve tax compliance. But industry professionals, including the Taxpayer Advocate, have questioned its ability to make taxpayers comply and think it will be burdensome for small business owners to implement.

The public comment period for the rule ended on Sept. 29 and Graves hopes to hear from Shulman soon.

 

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