Thread: Lawmakers: Repeal 'onerous' IRS rule

Now that House Republicans have had their token show-vote on the health care law, Congress is turning its attention to one small provision that everyone agrees should be repealed.

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Being in the profession, I can say that I have mixed feelings on this.

First things first, this would actually make it easier come tax time if businesses were required to 1099 all vendors as opposed to all of the guess work- i.e. a business should have some type of accounting/book-keeping system, whether it is Quickbooks or actually having an accountant who specializes in book-keeping/records(we CAN do this, however, we prefer focusing solely on taxes).

If a business can't comply with this, then they need a better accountant as I'd imagine tax time must be hell if you're waiting until March 1st to get everything together for your March 15th filing deadline(or if you pay quarterly, the 1st of every month that you do pay).

Then again, with a 1099 sent to the IRS it would be harder to adjust deductions for businesses.

And the bottom line is as much as we hate taxes and know that there is a lot of waste in the system to fix our economy there is just as much of a need to increase tax compliancy as there is to cut spending. This is the reasoning behind the 1099 Provision, they state it will increase tax revenues by $300m, which sadly won't put a dent in the deficit