Proposed 1099 tax reporting requirement fails Senate | TSLN.com
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Proposed 1099 tax reporting requirement fails Senate

The U.S. Senate this week rejected two separate efforts to repeal a proposed 1099 tax form reporting requirement, scheduled to kick in Jan. 1, 2012. It mandates that every business, charity and local and state entity submit the forms to the Internal Revenue Service for business transactions totaling $600 or more in a single year.

The Senate turned down an amendment to a small-business bill, offered by Sen. Mike Johanns (R-NE) that would have repealed the requirement. The Senate also rejected a Democratic alternative that would have exempted business with fewer than 25 employees and would raise the reporting threshold for the remaining businesses to $5,000.

The reporting requirement was opposed by LMA, over 20 farm and ranch organizations, the U.S. Chamber of Commerce, the American Farm Bureau Federation and others. The ag groups, in opposing the measure, said that virtually “all business to business transactions would be covered, creating a new major paperwork burden for farms, ranches and agribusinesses…” turning “producers into bookkeepers.”

The U.S. Senate this week rejected two separate efforts to repeal a proposed 1099 tax form reporting requirement, scheduled to kick in Jan. 1, 2012. It mandates that every business, charity and local and state entity submit the forms to the Internal Revenue Service for business transactions totaling $600 or more in a single year.

The Senate turned down an amendment to a small-business bill, offered by Sen. Mike Johanns (R-NE) that would have repealed the requirement. The Senate also rejected a Democratic alternative that would have exempted business with fewer than 25 employees and would raise the reporting threshold for the remaining businesses to $5,000.

The reporting requirement was opposed by LMA, over 20 farm and ranch organizations, the U.S. Chamber of Commerce, the American Farm Bureau Federation and others. The ag groups, in opposing the measure, said that virtually “all business to business transactions would be covered, creating a new major paperwork burden for farms, ranches and agribusinesses…” turning “producers into bookkeepers.”


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