Chairman Graves Statement On The IRS 1099-K Reversal
House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on the Internal Revenue Service’s (IRS) decision to reverse its implementation of the new “third-party payer” reporting requirements, or 1099-Ks, and its disproportionate impact on small businesses.
“I’m pleased that the IRS decided to reverse course on its requirement of reconciliation of gross receipts and merchant card payments on business tax forms. This would have disproportionately harmed small businesses during a time when they need relief. Tax complexities and burdensome federal requirements like the implementation of this 1099-K provision are barriers for small business growth in our nation today – it is important for Washington to remove these impediments to help our economic recovery.”
On behalf of small businesses, Chairman Graves has been urging the IRS to reverse their decision, writing a letter to IRS Commissioner on June 23, 2011 and again last week. Committee staff have also been working with the IRS on the implementation of this requirement since last year.