Agricultural News
Farm Bureau Wants 1099 Provision Dropped
Wed, 29 Sep 2010 17:09:17 CDTThe American Farm Bureau Federation says provisions in the new health care law that require farms, ranches and other businesses to complete an IRS Form 1099 for any expenditure totaling more than 600-dollars in a calendar year create an unnecessary and costly paperwork burden. AFBF President Bob Stallman says - farmers and ranchers are already burdened with excessive paperwork that takes time away from managing their businesses. Stallman notes that even the IRS’s national taxpayer advocate says this requirement will do little to improve tax compliance.
Farm Bureau sites a statement from LeMaster Daniels, an accounting firm that services numerous agricultural operations across Washington State and Idaho. The firm says the number of forms that would be required for a typical cattle operation with 250-thousand of gross income would increase over four fold from 16 to 68. And for a typical orchard with 175-thousand of gross revenue, the number of Form 1099s required would increase from one to 19.
Farm Bureau has filed comments with the IRS calling for repeal of the provisions that are set to take effect in 2012. The federation also backs H.R. 5141 and S. 3578, bills that would repeal the Form 1099 reporting requirements. According to Stallman, - farmers and ranchers will have to hire someone to do the paperwork or spend their own valuable time to do the research and fill out the forms.
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