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Small-businesses oppose expansion of 1099 rules San Diego Union Tribune

Small-businesses oppose expansion of 1099 rules

By Tanya Mannes , UNION-TRIBUNE

Saturday, August 21, 2010 at 6 a.m.

Small-business owners are seeking to repeal a tax provision tucked in the healthcare reform law that requires them to report more business-to-business transactions to the IRS.

The new rule is scheduled to take effect in 2012. It will require all businesses that pay more than $600 annually to any goods or service provider to file the IRS report known as a 1099. Currently, businesses file a 1099 report for each independent contractor, but not for goods such as office supplies or services such as vehicle maintenance.

The provision received little attention until now because it was buried in the 2,000-page Affordable Care Act that President Barack Obama signed March 23, 2010.

The San Diego North Chamber of Commerce and the San Diego Regional Chamber of Commerce both oppose the 1099 provision and support pending federal legislation to repeal it. The National Small Business Association and the National Federation of Independent Business have made repealing the provision a top priority.

Source:

National battle rages over Jones Act exemption

An ancient legal principle called cabotage requiring only U.S. ships and crews for transport between ports within the U.S. is hampering cleanup of the BP oil spill in the Gulf. A Hawaiian Senator wants President Obama to temporarily waive the 90-year-old law. This is a special report for the Grassroot Institute of Hawaii by Malia Zimmerman in consultation with shipping industry experts.

A national battle rages over whether foreign crews on foreign vessels with the latest technology can help the BP oil cleanup in the Gulf of Mexico.

President Barack Obama for eight weeks has refused to issue a waiver from the Jones Act, a federal law also known as the Merchant Marine Act of 1920, which mandates that all goods shipped between U.S. ports be transported in U.S.-built, U.S. owned and U.S. manned ships.

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