Statement on IRS 1099 Forms That Are Burdensome to Small Businesses

Congressman Mike McIntyre released the following statement regarding the health care reform 1099 IRS requirement, “Included in the health care reform law, which I did not support, is a burdensome tax compliance requirement for small businesses. Specifically, beginning January 1, 2012, a business will have to file an information return with the IRS if the total amount of payments made to another business in exchange for goods or services is $600 or more in a year.

“The increased cost of complying with the new reporting requirements will burden small businesses to the point that they limit hiring, forego certain investments, or reduce the number of vendors they do business with. Preparing and mailing 1099-MISCs has the potential to increase costs, as thousands of these documents may be required.

“I have voted for a bill in the House of Representatives to repeal this requirement. Unfortunately, the effort to repeal did not pass, but I remain committed to ending this burden for small businesses.

“I am dedicated to supporting America’s small businesses. During this time of economic challenges, it is important that we do not place an added burden on our small businesses. I know that small businesses are the heart of our American economy, and I am honored to stand with them. Small businesses are the engines that create nearly 7 of every 10 new jobs in our economy. As your voice in Washington, I have been working hard to alleviate the financial strain that is bearing down on small businesses and to give them better footing to compete and prosper.”