Vote 'YES' to Repeal the 1099 Mandate 

July 30, 2010

U.S. House of Representatives
Washington, DC  20515

Dear Representative,

You will soon vote on H.R. 5893, the Investing in American Jobs and Closing Tax Loopholes Act, which has speciously been dubbed another “jobs” bill. On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to support Rep. Dave Camp’s (R-Mich.) motion to repeal the 1099 reporting requirement.

Starting in 2010, businesses will be required to file a 1099 to the Internal Revenue Service (IRS) for each supplier or service provider to which payments exceed $600 in a single year. While businesses are already required to report payments to non-corporate service providers, the newly enacted healthcare law broadened this requirement to include corporate vendors and purchases of goods.

This new requirement will burden small businesses, forcing them to fill out more paperwork and tax forms, and devote more of their time and resources to dealing with bureaucratic red tape. Job creation, investment and innovation will suffer as a result of these new rules and regulations.

The new reporting rules have even come under fire from the National Taxpayer Advocate, an independent office within the IRS. In a July report they noted that the costs to businesses may outweigh any benefit the IRS gleans from the added information.

Rep. Camp’s motion would repeal this new 1099 reporting requirement and relieve small businesses from unnecessary busy work. All votes on H.R. 5893 will be among those considered in CCAGW’s 2010 Congressional Ratings.

Sincerely,

Thomas Schatz,
President