Washington, D.C. , Oct 5 - Today, House Small Business Committee Ranking Member Sam Graves (R-MO) sent a follow-up letter to Internal Revenue Service (IRS) Commissioner Douglas Shulman regarding the planned implementation of 1099 reporting mandate in the health care law.  This mandate requires every business to file a 1099 form for each purchase of goods or services of $600 or more per year from another entity, and is expected to dramatically increase compliance costs and paperwork for employers. You can read Ranking Member Graves’ letter here.

In the letter, Ranking Member Graves wrote, “During the month of August, I traveled to every corner of my Congressional district, visiting small businesses and holding town hall meetings.  A significant issue on my constituents’ minds was the burden and expense of compliance with this new 1099 requirement… I am disappointed that after over three months, I have not received a substantive or even an interim response from you on this critical issue.” 

Ranking Member Graves and members of the House Small Business Committee had previously sent the Commissioner a letter expressing their concerns about the implementation and effects of the 1099 rule on June 23, 2010.  The letter can be viewed here. Despite a written request for a response within 14 business days, neither Commissioner Shulman nor his aides have made any effort to respond to the letter.