Death by 1000 PaperCuts: Health Care Buries Small Businesses in Paperwork
Hidden deep in the new healthcare law is authority for the Internal Revenue Service to require, for the first time, that businesses report to the IRS every expense they incur over $600.
Currently, businesses must report the wages they pay on a 1099 filing, but are exempt from reporting payments to other businesses and for merchandise. This new rule was designed to raise revenue in order to pay for the trillion dollar bill.
A typical small business in a given year may have hundreds of vendors and several thousands of transactions. This portion of the bill will only hamper small business growth, which is crucial to our national economic recovery.
I have recently co-sponsored H.R. 5141, to repeal this portion of the health care bill. And today, I joined with my Republican colleagues on the House Small Business Committee in sending a letter to Douglas Shulman, Commissioner of the IRS, expressing opposition to this mandate.