coinvestor Posted April 1, 2011 Share Posted April 1, 2011 Will you help us repeal a costly and time consuming new IRS tax reporting requirement? Please take action today, and send an email to your members of the U.S. Senate asking them to support repeal of the new 1099 IRS reporting requirement. The U.S. Senate may vote TODAY to repeal this new IRS burden, so I hope you can send an email right now. Beginning on January 1, 2012, all businesses will have to file a "1099 form" with the Internal Revenue Service (IRS) for all purchases of property and services that cost cumulatively over $600. Up until now, businesses only reported purchases of services from non-corporate businesses. The new language requires 1099 reporting for virtually all transactions over $600. As a result, business owners will now have to send two forms – one to the company and one to the IRS – for almost every business-to-business transaction. And every company is also likely to receive an avalanche of 1099 forms from other companies. While supporters of the new reporting requirement say it will prevent companies from underreporting their income to the IRS, in reality the provision will impose onerous costs and unnecessary new requirements on businesses. In order to comply with this new law, businesses also will be required to obtain a Taxpayer Identification Number (TIN) from each company to avoid withholding taxes. Businesses providing services or selling property also could face withholding taxes on payments made to them if there is a problem with the TIN. Status: There is widespread, bipartisan opposition to this provision in both the House and the Senate. The U.S. House of Representatives has passed a 1099 repeal bill. In President Obama's January State of the Union address, he also called for a repeal of new IRS 1099 reporting requirements. The U.S. Senate may vote TODAY to repeal this new IRS burden. NAMA supports repealing this expensive new reporting requirement, and is an active participant in coalitions working to overturn this language. Won’t you click on the link below to send an email to your U.S. Senators? Your personal email today will make a huge difference to your bottom line! Click the link below to log in and send your message: http://www.votervoice.net/link/target/nama/yit9E6Bi.aspx Link to comment Share on other sites More sharing options...
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