Jewelry businesses sent more than 450 messages to legislators, asking them to repeal the regulation
(NEW YORK) - Jewelers of America (JA), the national trade association for businesses serving the fine jewelry retail marketplace, welcomes the repeal by Congress of the IRS 1099 reporting requirement.
The Senate passed H.R.4, â€śThe Small Business Paperwork Mandate Elimination Act of 2011,â€ť by a vote of 87-12 on April 5. It repeals the 1099 provision enacted as part of the health care reform law. The House had passed the measure on March 3.
â€śJewelers of America welcomes the passage of this important legislation. We applaud those in the industry who responded to our call to action and stood up for their businesses,â€ť says Matthew A. Runci, Jewelers of America President and CEO. â€śThe 1099 requirement would have been another regulatory obstacle for businesses to overcome as they climb out of the downturn. Thankfully, legislators got the message.â€ť
More than 150 businesses joined Jewelers of America in urging legislators to repeal the burdensome regulation. Starting next year, it would have required businesses to file an IRS Form 1099 for any vendor to which they pay more than $600 annually. This would have included payments to corporations and purchases of tangible goods, in addition to services. The requirement would have hurt small businesses, increasing the time and money spent during tax preparation.
With the repeal, businesses can continue to follow the current rule, only filing 1099 forms for an individual or unincorporated business performing professional services (such as independent contractors) that cross the $600 threshold.
In a campaign that officially kicked-off January 20, JA mobilized its membership and others in the trade to contact their Congressional representatives and ask them to support 1099 repeal. More than 450 messages were sent through the system, to legislators all over the country.
The campaign was one of several featured at JAâ€™s Legislative Action Center. Members and non-members can also send their own personalized messages to Congress on any topic â€“ for example, sales tax fairness and opposition to LIFO repeal. Additionally, they can take action on state-level campaigns related to sales tax fairness and cadmium in childrenâ€™s jewelry. Users can sign up to receive legislative action alerts from Jewelers of America by visiting www.capwiz.com/jewelers/mlm/verify/.