SEMA eNews Vol. 13, No. 40, October 7, 2010

SEMA Asks IRS to Help Kill 1099 Reporting Mandate

SEMA submitted comments to the Internal Revenue Service (IRS) opposing a requirement that businesses issue 1099 reporting forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. The mandate was included in the health-care law as a revenue-raising provision.

In its comments to the IRS, SEMA noted that it will fail in its mission to collect much under-reported income, but it will succeed in punishing small-business taxpayers who already comply with U.S. tax law.

SEMA acknowledged that the 1099 provision was imposed upon the IRS and the agency is required to implement the law. SEMA noted it is working on its own and with a number of other organizations to have Congress repeal the provision. SEMA urged the IRS to convey the “repeal” message to Congress.

The provision has garnered widespread opposition on Capitol Hill. SEMA will continue to press Congress to repeal the measure, either when lawmakers reconvene in November or early next year.

Click here to read SEMA’s letter.

For more information, contact Stuart Gosswein at stuartg@sema.org.

Rate this article: 
1
Average: 1 (1 vote)