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Small biz against more tax filings law

Small business

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TEXT OF STORY

BILL RADKE: The Senate starts work this week on a measure to support small-businesses and a test vote comes today. Republicans want to roll back a new rule that makes a business owner's tax return more complicated.

From the Entrepreneurship Desk at Oregon Public Broadcasting, Mitchell Hartman reports.


MITCHELL HARTMAN: The new rules are designed to catch tax cheats. Businesses will have to file 1099 forms for everything they buy over $600 -- office supplies, software-you name it. That has groups like the Small Business and Entrepreneurship Council barking mad.

Member Barbara Werner was at her Virginia garden store when I called.

BARBARA WERNER: The blessings of a small business is that I have my dogs with me. Get over here. Come on!

Werner is facing a mountain of new paperwork for the IRS.

WERNER: A thousand 1099s for the businesses that I purchase from? It would be staggering.

CPA Cap Willey of the National Small Business Association says his group backs a Republican amendment to repeal the provision. Then, the Senate bill should be passed -- to cut business taxes and get credit flowing again.

CAP WILLEY: Small business lending has pretty much dried up, so it's going to be a critical aspect to get the SBA back in gear.

The bill would restore money for SBA loans and provide up to $30 billion to community banks.

I'm Mitchell Hartman for Marketplace.

About the author

Mitchell Hartman is the senior reporter for Marketplace’s Entrepreneurship Desk and also covers employment.
Kryshon Bratton's picture
Kryshon Bratton - Sep 14, 2010

It just goes to prove how desperate this current administration is. They need every tax dolar they can get. Haven't they learned already, don't piss off the business community. Our government needs business a whole lot more than business need our government.

Brian Hurley's picture
Brian Hurley - Sep 14, 2010

This law clearly demonstrates how removed Congress and the Administration is from the routine workings of American business. Only a Democratic controlled government would enact such absurdity.