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Call to Action, IRS 1099 Reporting: Coin, Currency and Precious Metals

Nicholas Pyle, coordinates Numismatists United for Political Action. NUPA is a grassroots organization with a mission to educate and inspire the coin collecting community to stand up and be heard in Washington. To learn more about NUPA and join the group’s free grassroots outreach visit: http://groups.google.com/group/coincollectorsunited?hl=en
Or contact Pyle at Post Office Box 3731, Georgetown Station, Washington, DC 20027-0231. Phone 202)333-8190. Email napyle@gmail.com.


Calling all collectors, dealers, vendors and others to strongly support H.R. 5141 and the companion S. 3578 the "Small Business Paperwork Mandate Elimination Act," which if passed into law, would repeal the onerous paperwork burdens imposed on business by the ill-conceived expanded information reporting mandate contained in Section 9006 of the "Patient Protection and Affordable Care Act" (PPACA). This provision was used as an unrelated "pay for" in the PPACA and it should be rescinded based on the merits of the provision alone. Unless this section is repealed, coin currency and precious metals sellers across the nation will be subjected to the folly of data collection and information filing of IRS form 1099 on virtually all business-to-business and business-to-person transactions they make aggregating $600 or more in a year. Specifically, the provision would require any firm to file a 1099 form with each business or individual from which it purchases more than $600 in goods or services. The new requirement will take effect in 2012 unless it is repealed.
 

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What can you do? Three things: First contact your Congressman and Senators and urge them to join the 160 cosponsors of the legislation introduced by Congressman Dan Lundgren (R-CA). Second contact both your Senators to request they join the over twenty co-sponsors of Senator Mike Johanns’ (R-NE) S. 3578.

Go to www.senate.gov or www.house.gov to find your Members of Congress and their websites. TELEPHONE 202-224-3121.

Third using the link below join the tens of thousands of businesses writing Congress on this issue critical to the survival of coin show bourse sale activity. The link will provide you with great talking points to use in contacting your members of Congress.

http://library.uschamber.com/issues/letters/2010/national-sign-letter-repeal-1099-provision-health-care-law

Congressional Activity Update

Congress went on summer break after a contentious House vote on repeal of the 1099 reporting provision and the Senate almost invoking cloture on a Small Business Package with a similar amendment. In both cases Republicans did not go along with Democratic Leadership plans because of additional measures added to repeal measures under consideration.

Senate Democrats failed to invoke cloture on a substitute amendment to their small-business lending bill, as Republicans held firm on their promise to oppose cloture without a deal on amendments. Senate Majority Leader Harry Reid’s (D-NV) offer included votes on an amendment from Senator Mike Johanns (R-NE), to repeal a provision of the healthcare reform bill that expanded 1099 reporting for businesses; an amendment from Sen. Orrin Hatch, R-Utah, extending the research and development tax credit; and an amendment from Senate Finance ranking member Chuck Grassley extending the biodiesel tax credit.

On the other side of Capitol there actually was vote. House Republicans claimed foul when Democrats brought to the floor the GOP favored bill with a controversial pay-for, in an attempt to put the minority on the spot. The bill, introduced by New York Democratic Congressmen Scott Murphy and Bill Owens, would repeal a provision in the healthcare reform law that would expand 1099 reporting for businesses.

Democrats brought the bill to the floor on the suspension calendar, requiring a two-thirds aye vote to pass, but Republicans withheld support on grounds the bill was brought to the floor on short notice. They also object to the pay-for, which would raise about $19 billion by closing foreign tax loopholes.

Ways and Means ranking member Dave Camp (R-MI) offered the repeal provision as a motion to recommit on a tax and infrastructure bill that was pulled from the House floor in late July. The motion’s pay-for would have struck the entire tax bill, and its pay-for would come from reigning in the overpayment of healthcare subsidies. Camp cited opposition to closing the foreign tax credits by the U.S. Chamber of Commerce and the National Association of Manufacturers, who argue the pay-for amounts to a tax increase on U.S. multinational companies.

Ways and Means Chairman Sander Levin (D-MI) said the issue was simple and gave Republicans a choice of voting for the bill to help small businesses "or keep a tax loophole that ships jobs overseas." There was last-minute appeal by the National Federation of Independent Business to pass the bill.

The move to bring the bill up on short notice drew anger from Representative Dan Lungren (R-CA). Lungren, who sponsored healthcare-repeal legislation in April, said he has "never had that discourtesy done to me before." "I’ve tried to be bipartisan on this," Lungren said. "If [Democrats] want to stick it to us, they could do it by at least telling us ahead of time."

IRS to Exempt Credit Card Transaction from IRS 1099 Reporting

Excerpt from Prepared Remarks of IRS Commissioner Douglas H. Shulman Before the American Payroll Association and the American Accounts Payable Association, May 27, 2010.

“Congress also recently passed a new information reporting provision requiring expanded information reporting on payments made from businesses to corporations, and on payments businesses make for goods. This new information reporting requirement applies if businesses pay a single entity $600 or more per year in aggregate for these types of transactions starting in 2012.

While businesses do not need to file information returns on these payments until January of 2013, business groups – particularly those that represent small businesses – have raised concerns about the burden that this new provision may impose. I want to assure the business community that the IRS will look for opportunities to minimize burden and avoid duplicative reporting. That is why we will be spending the next several months soliciting input from businesses of all types and sizes before proposing regulations to implement the law. We will also look to service providers who help those businesses understand and adapt to new laws and regulations, to help us craft a process that is as efficient as possible. We know that there is no “one-size-fits-all,” so we want to hear your ideas.

At the risk of getting ahead of the game, I wanted to share with you just one example of how we are analyzing this provision, and looking for opportunities to streamline implementation and minimize burden. We plan to use our administrative authority to exempt from this new requirement business transactions conducted using payment cards such as credit and debit cards. These transactions will already be covered by reporting requirements on payment card processors, so there is no need for businesses to report them as well. So, whenever a business uses a credit or debit card, there will be no new burden under the new law.

I realize that this exemption covers a specific set of transactions, and you probably have lots more questions. But I share this idea with you as an example of where we are headed, not as a complete implementation plan. For that we will look forward to dialog and input from the business community in the coming months. As we proceed with our planning, we won’t hesitate to consider alternate approaches, including working with Congress to address any potential implementation issues that may arise during this process.”

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