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September 2010

TSCPA FEDERAL TAX POLICY COMMITTEE ISSUES LETTER TO IRS ON 1099 REQUIREMENTS

The TSCPA Federal Tax Policy Committee, today issued a comments letter to the Internal Revenue Service on Notice 2010-51, expanded Form 1099 reporting requirements. The committee encourages that the IRS make compliance as simple as possible, especially for small businesses.

In the letter, the committee recommends a $20 million gross revenue exception to the reporting requirements. It also suggests, regardless of the size of business, that the IRS increase the reporting threshold to an aggregate of $2,000 and capture only those expenditures of $300 or more. 

TSCPA comments letter to IRS


IRS Will No Longer be Distributing Tax Packages to Individuals and Businesses.

Last Friday, the IRS announced that effective for 2010, it will no longer send paper tax filing packages to individuals or businesses.  Rather prior year paper filers who did not use a professional preparer will be sent a postcard instructing them how to download or order forms, along with free filing options.  Links to the IRS articles announcing the new policy are below.

 

Individuals: http://www.irs.gov/individuals/article/0,,id=228162,00.html

Businesses: http://www.irs.gov/businesses/small/article/0,,id=228152,00.html


PRESIDENT OBAMA NAMES GENE DODARO COMPTROLLER GENERAL

President Obama this week made clear his choice for the Comptroller General postion with his nomination of Gene L. Dodaro. Dodaro will lead the Government Accountability Office, a position he has served in the interim since March 2008 when David Walker resigned.

AICPA President and CEO, Barry Melancon favors the nomination and believes Dodaro's leaderhsip and experience will serve the postion well.

http://www.journalofaccountancy.com/Web/20103374.htm


TSCPA ASKS LEGISLATORS TO REPEAL THE EXPANDED 1099 REPORTING REQUIREMENT

The Texas Society of CPAs is asking Texas members of Congress to repeal the section of the new health care law that requires businesses to report to the IRS any purchase from a vendor of goods or services worth $600 or more during the calendar year. The TSCPA said that this new provision to compile data and prepare the Form 1099 returns will add significant reporting burdens to businesses that will ultimately not produce the projected [$17 billion] additional revenue.

 TSCPA has seen both in the House and the Senate that there is a bipartisan effort to eliminate or at least reduce the requirement, but no consensus on a way to offset the loss of money. The letter will also be sent to the House Ways and Means Committee and the Senate Finance Committee.

TSCPA letter to Rep. Hensarling Repeal 1099


STATE CPA SOCIETIES ISSUE LETTER ASKING FOR BAN ON TAX STRATEGY PATENTS

The Texas Society of CPAs today joined the Michigan Association of CPAs and Virginia Society of CPAs in a multi-state letter to key legislators, hoping to refuel a provision that would prohibit the issuance of tax strategy patents. TSCPA’s letter was issued to Congressman Lamar Smith (R-TX-21), Ranking Member of the U.S. House Judiciary Committee.

 

MI-TX-VA Society Letter regading Tax Strategy Patents


SENATE FAILS TO REPEAL NEW 1099 REQUIREMENTS

The Senate came up short yesterday in securing enough votes for a provision in the Small Business Lending Fund Act that would have repealed or scaled back the hotly-discussed expanded 1099 reporting requirements. 

  

The controversial regulation, which is included in Section 9006 of the Patient Protection and Affordable Care Act, demands that businesses report to the IRS any purchase of goods or services worth $600 or more during the calendar year. The mandate is slated to begin in 2012 for forms filed in 2013.

 

Sen. Bill Nelson’s (D-Fla.) revised amendment proposal, also denied, called for a $5,000 threshold and exempting businesses with 25 or fewer employees, but would pay for the lost health care revenue by eliminating oil & gas industry tax incentives, which would have had a lasting effect to Texas.

 

http://www.webcpa.com/news/Senate-Fails-Pass-1099-Repeal-Amendments-55560-1.html