Jewelers of America is calling on Congress to pass legislation that would
repeal the IRS 1099 reporting requirement.
JA’s campaign, launched Jan. 20 through its legislative action center, has
already prompted more than 100 jewelry businesses to support 1099 repeal
through digital action alerts.
Beginning in January 2012, the regulation will require businesses to file an IRS
Form 1099 for any vendor to which they pay more than $600 annually. Previously,
businesses only had to file 1099 forms for individuals/partnerships performing
professional services (such as independent contractors) that crossed the $600
threshold. According to JA, the new regulation would place an undue burden on
small businesses, increasing the time and money spent during tax preparation.
Through its campaign, JA is mobilizing its membership and others in the trade
to contact their Congressional representatives and ask them to support repeal
of the IRS 1099 requirement. Several bills have been introduced to repeal
the provision. Rep. Daniel Lungren (R-CA) introduced H.R. 144 in the House,
while Sen. Max Baucus (D-MT) introduced S.72 in the Senate. A second Senate
bill, S.18, was also introduced by Sen. Mike Johanns (R-NE).
For more information, click here
or visit JA’s website jewelers.org.
JCK’s Paul Holewa detailed retailer
reaction to the requirement in an online
exclusive in November.