Edmond Sun: 1099 requirement yet another burden on small businesses

Mar 09, 2011
In The News

WASHINGTON, D.C. — Buried within the more than 2,000-page health care law passed by the former Democratic majority and current administration, among the dozens of mandates included in the legislation was one that had nothing to do with improving the health care in this country. This mandate — a new 1099 form expansion — requires businesses to issue a 1099 form for payments of goods and services that exceed $600 per year. This requirement creates an overwhelming amount of paperwork that would hinder the overall effectiveness of every business and reduce potential growth.

Some small business owners who deal exclusively with vendors would be hit particularly hard. Under this law, any business or professional practice that purchases supplies, professional services or contractor services valued at more than $600 annually will have to issue the supplier a 1099 form. In other words, every time your company spends more than $600 at Office Depot or on an air conditioning repair bill in one year’s time, that business must issue a 1099.

According to a National Federation of Independent Small Business Survey, tax paperwork is the most expensive paperwork burden placed on small businesses by the federal government, costing a whopping $74 dollars per hour. Our nation’s small businesses do not have their own in-house accounting departments to handle an unreasonably high volume of paperwork. This time-consuming and costly mandate creates extra hours and extensive paperwork that will cost all small business owners precious time, energy and resources they could otherwise be using to create jobs.

It is irresponsible to hinder the American people and small businesses with burdensome requirements at any time, much less during our current economic crisis. The first vote taken by the new House majority in the 112th Congress was to repeal the health care bill. Unfortunately, that bill did not come close to passing the Senate, and moving forward, we are forced to dismantle this misguided law piece by piece. I look forward to working with my colleagues on measures that will genuinely help American workers and their families, and allow employers to focus on job creation.

# # #

Recent Posts

Jun 17, 2024
National Security

Lucas Votes for NDAA on 249th Birthday of U.S. Army

Washington, DC – Congressman Frank Lucas (OK-03) released the following statement after the U.S. House of Representatives passed the FY25 National Defense Authorization Act (NDAA). Lucas voted in favor of the legislation.   “Today, on the 249th birthday of the U.S. Army, House Republicans fulfilled our duty to support America’s servicemembers and bolster our national security. Not only […]

Jun 3, 2024

Lucas Statement on Farm Bill

Washington, D.C. – Congressman Frank Lucas (OK-03) released the following statement after the House Committee on Agriculture completed its markup of the next Farm Bill: “I applaud Chairman Thompson for completing the gargantuan task of passing this Farm Bill out of Committee. As a former Chairman of the House Ag Committee, I know firsthand just how […]

May 16, 2024

Lucas: Basel Endgame Will Penalize Central Clearing

Washington, D.C. –  At today’s House Financial Services Committee hearing, Congressman Frank Lucas (OK-03) questioned FDIC Chair Gruenberg and Federal Reserve Vice-Chair Barr on the consequences of the Basel Endgame proposal. Specifically, Congressman Lucas brought to attention his concern that the Basel requirements will constrain the capacity of banks to offer central clearing. He has previously pressed this […]