In a recent announcement, the International Franchise Association (IFA) hailed the House of Representative's vote to repeal the expanded 1099 reporting requirements originally included in the Obama healthcare reform act.
The following is a quote of the IFA statement:
WASHINGTON, March 3—International Franchise Association President & CEO Steve Caldeira issued the following statement today following today’s passage of H.R. 4, the Small Business Paperwork Mandate Elimination Act, to repeal the expanded 1099 reporting requirements included in the Patient Protection & Affordable Care Act (PPACA):
“The franchise industry applauds today’s vote to repeal this burdensome reporting requirement before it impacts franchise small businesses still struggling to recover from the economic downturn. IFA urges the Senate to move quickly to pass H.R. 4 and send the bill to the President’s desk for signature so that franchise businesses can focus on growing their businesses and creating new jobs.”
“The expanding 1099 reporting provision in PPACA would require franchise small businesses to report routine business‐to‐business transactions such as; but not limited to, supplies, advertising, services, furnishings and equipment, creating a tsunami of paperwork and burdensome recordkeeping for small business owners, said Caldeira. “IFA members have sent more than 1,500 emails to lawmakers explaining how the 1099 requirement would overwhelm their operations, as the paperwork filing burden associated with this provision will be too great for many franchise small businesses to comply and could lead to inaccurate filings that may trigger audits and penalties.” http://franchise.org/Franchise-News-Detail.aspx?id=53218.
Do you agree with the IFA? Let me know your comments.