Today, the House will vote on Congressman Scott Murphy's (NY-20) legislation, the Small Business Tax Relief Act, to eliminate the 1099 reporting provisions found in the Patient Protection and Affordable Care Act. Specially, it would get rid of Section 9006 of Patient Protection and Affordable Care Act, which was designed to help identify businesses that are not reporting or are underreporting income to avoid paying their fair share of taxes.
Beginning in 2012, Section 9006 would require any taxpayer with business income to file form 1099 reporting all purchases of goods and services totaling more than $600 that year. As written, the law would require small businesses to collect Taxpayer Identification Numbers (TIN) as well as company information for each purchase they make. While this may be possible for large companies with sophisticated accounting systems, it has the potential to be a significant administrative and cost burden to small businesses that do not currently have the capacity to track every purchase.
"This is a huge win for small businesses. This bill will close tax loopholes for corporations who ship jobs overseas so that we can cut more than $19 billion in taxes on our small business and remove burdensome paperwork that will potentially stifle private sector growth and cost our small businesses jobs. As a small businessman, I know that private industry, not the government, is key to our economic recovery. I will keep fighting for small businesses because they will always be the engine of job creation in America."
This legislation is fully paid for under PAYGO rules. According to the Ways and Means Committee, it will save small businesses $19.2 billion by closing loopholes for corporations that ship jobs overseas.
Congressman Murphy has used his background as a small businessman to fight for small businesses by consistently supported increased small businesses lending and has voted to lower taxes and extend tax relief for Upstate small businesses.