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: Private Company Roundtable: Issues |
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- 1099 Reporting Requirement - Jun 2011
As part of the Patient Protection and Affordable Care Act (PPACA) signed into law in March of 2010, businesses will be required to file a 1099 tax form identifying anyone to whom they pay $600 or more for goods or merchandise in a year. Businesses will also have to send copies of the form to their vendors, suppliers and contractors.
CPC-P agrees that finding practical ways to reduce the tax gap and prevent fraud, waste and abuse is beneficial, not only to the government, but to the business community. However, as currently written, this law is overly burdensome to privately-held and family owned businesses. Specifically, these new requirements are expected to increase the man-hours spent on complying with 1099 reporting requirements substantially when to provision takes effect in Jan. 2012.
CPC-P is working with others in the business community to see that Congress fully repeals these new requirements – an effort that has garnered bipartisan support. (see talking points)
- Private Company Tax Policy Priorities - Mar 2011
The Committee on Private Company Policy strives to preserve key tax provisions which will help companies maintain capital formation opportunities in the current economy. Recently, policymakers have begun the task of looking into updating and simplifying the nation’s tax code. The committee regularly reviews efforts like this and examines legislation that could impact the competitiveness of privately-held companies and jobs created in the U.S. The following are the committee's top principles pertaining to tax policies and reform.
Statement of Principles on Federal Tax Reform (see talking points)
· The overall goal of any tax reform effort should be to strengthen U.S. economic growth, increase U.S. job opportunities, and improve the competitiveness of U.S.-based companies in the U.S. and international markets.
· Raising the tax burden on job creators would be counter to recent trends of other developed countries and would threaten economic growth and undermine the competitive position of privately-held companies.
S-Corporation Modernization and Principles (see talking points)
· S Corps create millions of jobs and continue to be a driver of the US economy. The S Corp is America’s most popular corporate structure with almost 4 million in existence today (Nearly 62% of all business entities).
· The S Corp structure needs to be modernized to keep corporations relevant for future capital formation and job growth, and Congress and the Administration should maintain current choices businesses have regarding the establishment of their tax structure.
- Federal Requirements and Regulations - Mar 2011
In 2010, two significant legislative packages cleared Congress, including the Wall Street Reform and Protection Act as well as the Patient Protection and Affordable Care Act. These two packages account for a major onslaught of new rules and regulations, which according to a Small Business Association study published in September 2010, have increased to almost $1.75 trillion in costs for businesses. Small to mid-sized companies spend approximately $10,500 per employee on regulations and are often impacted the hardest, with a roughly $2,800 difference between smaller companies compared to their larger counterparts in the costs of regulations.
It is vital that Congress take a look at not just the rules and regulations mentioned here, but do a complete inventory on the costs and impacts of all rules and regulations impacting companies. The Committee on Private Company Policy applauds both President Obama and Congress for understanding the need to do a complete regulatory review, but would ask that such a review include requirements promulgated by independent agencies. We look forward to working with policymakers to make sure that privately-held companies, in this time of continued economic uncertainty, are protected from burdensome requirements. (see talking points)
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