Group seeks to repeal compliance rule for small businesses

"This new paperwork burden will be a nightmare for small-business owners," the group's communication states. "Small-business owners know what the impact of this mandate will be — like crushing costs and more time and effort devoted to paperwork and compliance efforts rather than expanding business opportunities and growing revenues."

However, efforts to repeal the mandate have derailed after the Senate on Wednesday night failed to reach an agreement on how to proceed with the small-business jobs bill. Sen. Mike JohannsMike JohannsFarmers, tax incentives can ease the pain of a smaller farm bill Lobbying World To buy a Swiss company, ChemChina must pass through Washington MORE (R-Neb.) sought to amend the proposal with a measure repealing the mandate that is a part of the new healthcare law.

Last month, Graves sent a letter to IRS Commissioner Douglas Shulman expressing strong concerns about how the mandate might negatively affect businesses and requested information on how the agency plans to help employers comply with the law. Shulman has yet to comply with that request.