U.S. Representative Frank A. LoBiondo (NJ-02) today cosponsored legislation to repeal the 1099-K reporting mandate that would require small businesses to report and reconcile all transactions with third party payment entities such as credit card companies.
"The idea that we need to add more burdensome, costly reporting requirements on our small businesses rather than reducing their workload defies common-sense," said LoBiondo. "South Jersey employers should be focused on running their businesses that help grow our economy and create jobs, not wasting time and resources to cross-reference and reconcile their own internal numbers with those reported by third parties. As Congress came together to repeal the job-destroying 1099 mandate, we must again remove the 1099-K reporting mandate from the books in order to create certainty for small businesses."
Included in the "Housing & Economic Recovery Act", the 1099-K reporting mandate requires that all credit transactions within a merchants business for a given year be provided to the Internal Revenue Service (IRS). LoBiondo voted against the final version of the "Housing & Economic Recovery Act" when it came before Congress in 2008. The U.S. Chamber of Commerce and National Federation of Independent Business (NFIB) are also opposed to this burdensome reporting mandate.
In April 2011, Congress repealed a similar mandate known as the 1099 small business paperwork requirement which was included in President Obama's healthcare reform law. Set to take effect January 1, 2012, the provision would have required small business owners to report to the IRS all payments of more than $600 on 1099 forms. It was repealed with strong bipartisan support. LoBiondo voted in support of repealing the 1099 provision.