Thursday, March 3, 2011

Just in

AFBF Urges House to Repeal Form 1099 Requirements

Washington-The American Farm Bureau Federation today urged House members to save farmers and ranchers the needless time and expense of complicated paperwork requirements associated with Form 1099 information reporting. By passing H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, Congress can end the requirement.

In a letter to House members, AFBF President Bob Stallman said the requirement for farms, ranches and other businesses to complete an IRS Form 1099 for payments made for goods and services will have a negative impact on business owners. As of now, the new reporting requirement will begin in 2012 and will include a mandate that forms be submitted for each non-employee supplier of goods and services aggregating $600 or more in a calendar year.

“Farm and ranch businesses are overburdened with tax paperwork and reporting obligations and the additional reporting requirements would further increase the cost and complexity of complying with the tax code,” said Stallman in the letter. “In addition to increasing costs, added paperwork will consume valuable time that would be better used to manage farm or ranch businesses.”

According to Stallman, not only would farm operators be required to prepare additional 1099 forms, they also would face a new administrative burden from reconciling the forms they receive from the sales of their products and compiling required information to ensure compliance.

The legislation to repeal the Form 1099 provision is scheduled for this afternoon.

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