SMC Business Councils Urges Full 1099 Repeal

PITTSBURGH, Sept. 14 /PRNewswire/ -- SMC Business Councils, the Voice of PA Business, urges the U.S. Congress to make the full repeal of the onerous 1099 tax reporting regulations as its first priority when it returns to work this week.

SMC has been battling expanding the 1099 reporting, which will cost American small businesses billions of dollars annually, ever since the proposal was first raised during the Bush administration. But the fight became more urgent with the health law that was passed by the Democratic-led Congress and signed by President Obama in March 2010.

The new law, which takes effect in 2012, would require all small businesses to issue an IRS Form 1099 to any vendor or services or property they paid more than $600 in a year. There are stiff penalties for failing to file the forms to the IRS; it will be a massive paperwork and cost issue to small businesses that even the IRS’s own taxpayer advocate thinks is unwise.

SMC has been a leader in the battle to overturn the regulations. SMC President Tom Henschke has been quoted widely in the national media as a passionate critic of the 1099 expansion. A survey of SMC members finds that they file roughly 10 forms per year; the members estimated that would jump to more than 200 a year under the new law.

“Throwing mounds of needless paperwork at the nation’s job creators, small business, is exactly the opposite of what the government should be doing,” Henschke said. “This measure must be repealed.”

For more from SMC about the 1099, read this article from Dynamic Business: http://bit.ly/auAVkr. And read government relations manager Eileen Anderson’s recent opinion piece at bit.ly/aSDwZf.

For more than 65 years, SMC Business Councils has been the leader in providing Pennsylvania small businesses with the services and products needed to ensure their growth. With offices in Pittsburgh and Harrisburg, SMC offers HR, advocacy, insurance and other business-development services to its members in manufacturing, small business and home-based entrepreneurs throughout the Commonwealth. You can find SMC Business Councils on the Web at smc.org.

SOURCE SMC Business Councils