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1099 Burden Opposed by National Grange

By National Grange View From The Hill (2/3/11)

  FEBRUARY 27, 2011 --

The National Grange joined other agricultural organizations to support the repeal of the new IRS Form 1099 filing requirements in a letter to Senators Mike Johanns and Max Baucus. While this new provision might improve tax compliance, it is certain to make record-keeping costs for our members skyrocket.

Farms, ranches and related agri-businesses already are overburdened with tax paperwork and reporting requirements. Under existing law, a Form 1099 must be issued to unincorporated service-providers that are paid more than $600 during a tax year. Under new reporting rules set to start in 2012, Form 1099s will be required for payments to incorporated vendors and will be expanded to cover payments made for goods as well as services.  Virtually all business-to-business transactions will be covered, creating a new major paperwork burden for the farms, ranches and related agri-businesses.

The business of producing food, fiber and fuel is a handsome venture where productivity and competiveness is compromised by government rules and regulations that turn producers into bookkeepers. The letter, dated January 31, 2011, asks that prompt action be taken by Congress to reverse this onerous tax-reporting requirement.


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