Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Repeal of 1099-MISC Form expansion needed says CUNA
WASHINGTON (2/14/11)--The Credit Union National Association (CUNA) backs an effort to repeal a tax provision that would force companies to send 1099-MISC forms to any entity that has provided $600-worth of goods. For many years, credit unions and other businesses have been required to report to the Internal Revenue Service on Form 1099-MISC certain payments of $600 or more that will be considered income by the IRS. As a “pay-go” effort to offset the cost to taxpayers of the new healthcare reform law, Congress extended the 1099-MISC reporting provisions to cover payments for goods valued over $600. “This is an extremely burdensome reporting concept that will require businesses to gather tax identification numbers and to generate many millions of new tax forms that will have questionable value in actually increasing federal revenue,” CUNA Senior Vice President for Compliance Kathy Thompson explains. The provision is scheduled to go into effect in 2012. Sen. Debbie Stabenow (D-Mich.) earlier this month successfully added a repeal provision to a pending Senate bill when she and 80 of her colleagues voted in favor of her amendment to S. 223. That bill is expected to pass the Senate this week. In the House, a repeal bill sports 271 cosponsors, representing enough backing to pass the measure when it come to a full House vote. In fact, the chairman of tax-rule-writing panel, House Ways and Means, said he intends to get a repeal bill through the House in the next few weeks. The Obama administration also favors repeal. In a 2010 comment letter to the Internal Revenue Service (IRS) CUNA argued that an exact reading of section 9006 of the healthcare law that amends the 1099-MISC reporting rules should exempt tax-exempt organizations completely from this new 1099 reporting rule. However, the IRS proposed rule to implement the provisions attempts to address what it viewed as a congressional drafting error and would subject credit unions along with all businesses to the expanded 1099-MISC reporting requirements. In a related event, CUNA intends today to sign onto a letter sponsored by the American Society of Association Executives that calls for repeal of the 1099-MISC requirement on goods. The letter features 31 pages of signatures of association executives calling for repeal.


RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
11 hours ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
13 hours ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
14 hours ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
16 hours ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
16 hours ago