November 4, 2010
President Obama Concedes that 1099 Rules are Burdensome
Following this week’s midterm elections which saw the Republicans take back control of the House of Representatives, and eroded the Democrats’ majority in the Senate, President Obama conceded that new Form 1099 reporting requirements are “burdensome” for small businesses and vowed to work with Republicans on a legislative fix. The National Shooting Sports Foundation was one of the first groups to bring this important matter to congress’ attention.
Repealing the Form 1099 requirements, buried in the health care bill, has broad support from both sides of the aisle. It is largely seen as a move that would benefit both high volume retailers and smaller mom-n-pop shops.
Scheduled to take effect in 2012, the new IRS reporting requirement would force businesses to provide a 1099 to vendors from whom they buy goods totaling $600 or more annually. Small businesses will need to issue hundreds or even thousands of forms each year, track cumulative payments to vendors and obtain tax identification information from each vendor. And the “vendor” could be a gun owner who sells used firearms to a retailer.