The American Sheep Industry Association (ASI) joined 27 other national and state agricultural organizations requesting a repeal of the new IRS Form 1099 information return filing requirements.
Farms, ranches and related agribusinesses 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 tractions 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 hands-on venture where productivity and competiveness is compromised by government rules and regulations that turn producers into bookkeepers. Prompt action is needed by Congress to reverse this onerous tax-reporting requirement.