The Owner Operator Independent Driver Association reported that buried deep in the Patient Protection and Affordable Care Act-a 906 page law also known as the Health Care Overhaul Bill-was a new requirement for all business owners to submit a separate 1099 form for every single business-to-business transaction that totals more than $600 in a given year. For a small-business trucker, that could amount to hundreds of 1099 forms every year-forms for every fuel stop, repair service, parts provider, or restaurant.
This is not just a problem for truckers; it applies to all small businesses. Most would have to add staff to document all expenditures, originate and distribute 1099s, and collect and process 1099s from customers. Most would not be able to afford this additional expense and would have to close their doors.
Now imagine the additional staff the Internal Revenue Service would require to process all the 1099s and auditing. We already have 4 out of 10 families in non-farm employment that have at least one member working in a government job.
Fortunately, there is already acknowledgment in Congress for the need to repeal the upcoming Form 1099 requirement. Senators from Nebraska and Florida have introduced amendments to repeal or limit the 1099 requirement. Each amendment will require 60 votes; let us hope they succeed.
A good example of egrigious government help Lou. My local hardware manager in Frederic talks about getting out of the business because of all the time he must spend filling out government forms.
ReplyDeleteIt is interesting to talk to small shopkeepers and get their perspective on things. It provides a lot of insight we never got working with large companies.
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