By The Hill Staff - 10/26/10 07:45 PM EDT
"I am extremely disappointed by the IRS's ongoing refusal to help employers understand the impact of this hefty requirement," Graves said in prepared remarks. "The questions and confusion surrounding the 1099 reporting rule have stalled small business growth in America."
The new rule was enacted as part of the healthcare reform bill and requires every business to file a 1099 form to the IRS for every purchase above $600. Several organizations, including the IRS watchdog Taxpayer Advocate, have said the rule will overburden businesses.
The IRS' Information Reporting Program Advisory Committee recently deemed the mandate "burdensome" with "no measurable purpose."
"Entrepreneurs are unable to plan for the future, expand their operations or hire new employees for fear that this mandate could force them to dramatically change the way they do business," Graves said. "I respectfully reiterate my request that Commissioner Shulman and the IRS provide our small business owners with some much needed clarity on the scope of this rule."
Graves asked Shulman to provide with him implementation guidelines in a June 23 letter. A similar request was sent three weeks ago.
Despite these requests, neither Shulman nor his aides have responded to the letter, Graves states.