Franchisee Alert: Vote Tomorrow to Revoke New 1099 Requirements
In 2012, a new law will go into effect which will force franchisees to spend all of their time filling out paperwork.
The law - made up of just a few sentences in the 1000+ page health care bill - requires business owners to file an IRS Form 1099 for all payments of more than $600 a year paid to providers - including corporations - that provide tangible property and services. What does this mean? If your business pays ANYONE over $600 CUMULATIVELY over the span of one year, you will need to "1099" them.
Since its passage, leaders from both sides of the aisle have expressed their concern over this new law. Even President Obama called for the bill's repeal in his State of the Union address earlier this year. So why hasn't it been revoked in over a year? Politics, of course!
Democrats and Republicans are fighting over how to pay for the estimated $19 billion in lost revenues that a complete repeal is expected to cause. The House's version requires taxpayers who receive federal health insurance subsidies to pay back the IRS if they are deemed ineligible; the Senate bill pays for the cost of the repeal with unused, previously appropriated federal funds as determined by the Office of Management and Budget.
The Senate is scheduled to vote TOMORROW on the House-passed version of a bill which would fully repeal the 1099 reporting requirement. If passed without any amendments, the bill would go to the President's desk for his signature. If not, it's back to the drawing board with the 2012 implementation date looming in the distance.
Please contact your Senators TODAY and tell them to vote YES on H.R. 4 without amendments and repeal a law which neither Congress, the White House nor the American people want put into place.
These and other important issues can be found on the CFA Votes! website.