April 15, 2011
CONTACT: Gayle Lynn Falkenthal, APR
619-997-2495 or firstname.lastname@example.org
Corrective Legislation Good News for San Diego Contractors
ABCSD supported bill signed into law today repeals onerous tax paperwork burden
(San Diego) - Legislation supported by the Associated Builders and Contractors nationwide including the San Diego Chapter to repeal an onerous tax paperwork requirement that would be a job killer for small business was signed into law today by President Barack Obama.
“ABC has led the effort with other business advocates to repeal the new expanded IRS Form 1099 reporting requirements,” said ABCSD President & CEO Scott Crosby. “Our members would have been greatly affected by these rules, placing an enormous paperwork and cost burden on them at a time when they can least afford it in a struggling economy. We’re grateful to President Obama for signing this measure into law, and we thank Congress for acting to rectify this situation by passing corrective legislation. It’s a pleasure to get good news on tax day for a change.”
Under the Patient Protection and Affordable Care Act approved last year, starting in 2012 businesses would have to file an IRS Form 1099 for every business or individual from whom they cumulatively purchase more than $600 in goods over a year. The annual $600 threshold applies to all vendors, so that businesses could find themselves sending out 1099 forms for purchases such as office coffee, office supplies, and fuel. Rather than hiring additional workers to expand and grow, small businesses would be spending money on staff time or accountants to comply with these new requirements. The Small Business Paperwork Mandate Elimination Act of 2011 (H.R. 4) signed today by the President repeals the expanded 1099 requirements.
“Imagine the nightmare our small contractors would face,” said Crosby. “For every small bit of supplies purchased for a single project, the business would have to keep track just in case the small purchases added up over a year to more than $600. In addition, any single purchase of simple plumbing or electrical supplies would generate IRS paperwork. Our businesses would end up drowning in endless bookkeeping details and someone would need to be paid to do all of this. What a relief that this paperwork monster has been killed.” said Crosby.
About Associated Builders and Contractors of San Diego
Associated Builders and Contractors (ABC) is a national trade association representing 22,000 members from more than 19,000 construction and industry-related firms. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. The San Diego Chapter of ABC represents construction and construction-related firms throughout San Diego County. To find out more about ABCSD, visit www.abcsd.org.