Miller: Putting a Stop to Onerous New IRS Burdens on Small Business

Statement

U.S. Congresswoman Candice Miller (MI-10) today joined an effort aimed at halting a preposterous new tax burden on small businesses created by section 9006 of the Patient Protection and Affordable Care Act (PPACA). The Small Business Paperwork Mandate Elimination Act (H.R. 5141) will end the requirement which will be effective in 2012 that will force business owners to submit a separate 1099 reporting form to the IRS for every single business-to-business transaction that totals more than $600 in a given year. Miller issued the following statement after signing on as a co-sponsor of this legislation:

"As we begin to find out more and more of what is in the over 2,000 pages that make up the government takeover of health care, the more troublesome it becomes. The bill authorizes billions of dollars to hire new IRS agents and now we understand another reason why. Section 9006 of the bill actually requires every business in this nation to file a 1099 form to the IRS for every business-to-business transaction it makes of over $600. If this absurd provision isn't removed it will place huge new burden on all of the nation's small business owners, driving up their costs to comply with onerous government regulations instead of focusing on serving their customers, growing their business and creating new jobs. Countless Michigan workers and businesses have been feeling the strain in the current economic crisis, and our government should be focused on ways to help them grow rather than bury them under a mountain of paper work. An army of new IRS agents and a mountain of paperwork for small businesses will do nothing to improve the quality of health care for Americans, but it will impede economic growth and the creation of new jobs.

"All of this is why I am proud to co-sponsor the Small Business Paperwork Mandate Elimination Act that will eliminate this onerous and unnecessary new requirement. Small businesses need to be focused on growing their business and new jobs and not on complying with needless new IRS regulations."

Under current law, businesses must report services performed by non-corporate entities, such independent contractors. The PPACA will vastly expand that requirement starting in 2012 by extending it to corporate vendors and by mandating reporting for goods and gross revenues. Small business owners will have to provide 1099 forms for basic businesses expenses, including phone and internet service, shipping costs and office supplies. In addition, Section 9006 will likely cause businesses to remove competition and negotiations between individual vendors or small business versus a large supplier because the new requirement will force business to fill out an additional 1099 form for each individual vendor with whom they do business.

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