President eases tax filing burden
Graphic courtesy of National Drought Mitigation Center
About 26 percent of the state of Texas is in exceptional drought, and the rest in from a moderate to severe drought, according to the U.S. Drought Monitor. Download PDF of this map below.
The second time was the charm for farmers, ranchers, and small businesses across the nation when the U.S. Congress approved a bill to repeal the requirement for filing additional Internal Revenue Service (IRS) Form 1099s as approved by the 111th Congress. This compliance followed the Patient Protection and Affordable Care Act, also known as the Healthcare Law, which was approved last year.
On April 14, President Barack Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011, which eliminated the additional filing requirement. If he had not, farmers, ranchers, and small businesses would be required to file a 1099 form for all vendors receiving payments -- including goods and services -- of $600 or more annually, which would have taken effect in January 2012.
According to a National Federation of Independent Business (NFIB) report, “The new requirement was added to the healthcare law in an attempt to raise $17 billion to help cover the near $1 trillion cost of the new law, but has nothing to do with healthcare.” In this same report, according to an NFIB Small Business Survey, this would cost small businesses an estimated $74 an hour.
Last year, in an American Farm Bureau Federation press release, Farm Bureau cited research by accounting firm LeMaster Daniels, which estimated a typical cattle operation with $250,000 of gross income would see an increase in the number of required 1099 forms from 16 to 68. For a typical orchard with $175,000 of gross revenue, the number of forms would increase from one to 19 annually.
Congress failed in its first attempt to overturn this ruling, with S 3578 and HR 5141, both known as the Small Business Paperwork Mandate Elimination Act, which were introduced last year.
American Farm Bureau Federation President Bob Stallman released a statement after the Senate approved HR 4 April 5. “This was a costly, burdensome, and unnecessary tax compliance requirement that was counterproductive to job creation and economic growth,” Stallman said. “Farmers, ranchers, and small businesses are overloaded with paperwork, and we are pleased that our leaders in Washington took steps to provide relief.”