Cochran hopeful Senate will repeal new IRS rule for small businesses

WASHINGTON, DC (WLOX) - One of Mississippi's strongest voices in Washington is speaking out against an IRS mandate that could mean more paperwork for small business owners.

Senator Thad Cochran said it would require businesses, local governments, churches and charities to use IRS 1099 tax forms to substantiate all business transactions of more than $600 a year for goods, property and services.

"This section of the health care law creates a paperwork nightmare for small businesses, local governments and other organizations," Cochran said. "Turning back this mandate will assure small businesses that they can devote more of their time and resources toward creating jobs and expanding the economy rather than filing IRS forms."

On Monday, Cochran and 60 other senators voted for an amendment to fully repeal the IRS 1099 reporting requirements in the health care law. The amendment was added to the FDA Food Safety and Modernization Act. But the group needed 67 votes for the amendment to be considered.

"It is an onerous mandate that did not need to be part of health care reform, and I remain hopeful that enough Senators will support repealing this mandate before it goes into effect early next year," Cochran said.

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