Dan Danner of The Wall Street Journal takes on the 1099 mandate in a recent opinion piece:
Adding insult to injury, the law also requires all businesses to issue IRS 1099 forms to document every business-to-business transaction of $600 or more. To someone who’s never run a business, this may sound like nothing. But Congress hopes to raise $17 billion in added tax revenues and fees from this new mandate. That’s hardly nothing.
The burden of raising that expected revenue falls again on the backs of small business owners who already suffer under unmanageable federal paperwork burdens. What’s worse, this new reporting requirement has absolutely nothing to do with health-care reform. It was included to help pay for the nearly trillion-dollar price tag of the bill. Why should small business owners have to pay for a bill that causes them so much harm? They shouldn’t, which is why NFIB is fighting against this law in court.
Update: Previous posts on the new 1099 mandate are available here.
One thought on “The 1099 Mandate”
All this for another $17 billion? Sadly, that now a drop in the bucket in terms of deficit reduction.
Has anyone estimated the total compliance cost for all businesses to implement this mandate? Keep in mind, this applies to most consultants and independent contractors as well. Between analyzing pretty much every business transaction, requesting and filling out W-9 forms from everyone a company does business with, and then filing a stack of 1099s, I suspect that compliance cost may exceed the new revenue they hope to raise.