Obama’s 2013 budget plan includes higher air passenger fees
The 2013 budget plan proposed by the Obama administration calls for a rise in passenger security fees at airlines, with a goal of collecting as much as $25.5 billion in additional passenger fees over the next 10 years. Airlines have expressed disapproval at the proposed fee increase, citing possible job cuts. The budget request also proposes a bill that would boost transportation spending to $476 billion over six years as well as a $1 billion budget for hardware upgrades at the Federal Aviation Administration. The Wall Street Journal/Dow Jones Newswires (2/13), USA TODAY/Today In The Sky blog (2/13), The Hill/Transportation blog
Category Archives: Taxes
New rule to file 1099’s for purchases?
Published on Specialty Equipment Market Association (http://www.sema.org)
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SEMA Opposes Requirement to File IRS 1099 Forms for Everyday Purchases
Beginning in 2012, businesses will be required to file “Form 1099” information returns with the Internal Revenue Service (IRS) and report all payments to corporations for goods or services in excess of $600. Under current law, most corporations are exempt from receiving 1099s. The 1099 reporting requirement is expected to raise $17 billion over 10 years. It was included as a revenue-raising initiative under the new health care law, in this case, collecting taxes on a potential source of unreported income.
SEMA-supported legislation has been introduced in Congress to repeal the requirement. Unless overturned, the rule threatens to impose enormous burdens on small businesses, certified public accountants and tax preparers as they attempt to track and report a wide range of payments to contractors, vendors and others. For example, companies would be required to report business-to-business payments for airline tickets, office supplies, phone and shipping services.
The IRS is seeking comments on how to best implement the law. The IRS has proposed to exempt purchases made with credit or debit cards since they are now reported by banks and other payment processors. However, it would not be a solution for businesses that pay by check or cash, or for vendors that do not accept credit/debit cards, in part, to avoid the 2% or 3% transaction fees. Additionally, if a vendor refuses to supply a tax ID number, then the payer could be required to withhold 28% of the vendor’s payment and send that amount to the IRS.
Comments about the IRS proposed rule are due by September 29. SEMA is working with a coalition of other associations to repeal the law.
For further information, contact Stuart Gosswein at stuartg@sema.org.
Law & OrderGovernment Affairs
New rule to file 1099's for purchases?
Published on Specialty Equipment Market Association (http://www.sema.org)
——————————————————————————–
SEMA Opposes Requirement to File IRS 1099 Forms for Everyday Purchases
Beginning in 2012, businesses will be required to file “Form 1099” information returns with the Internal Revenue Service (IRS) and report all payments to corporations for goods or services in excess of $600. Under current law, most corporations are exempt from receiving 1099s. The 1099 reporting requirement is expected to raise $17 billion over 10 years. It was included as a revenue-raising initiative under the new health care law, in this case, collecting taxes on a potential source of unreported income.
SEMA-supported legislation has been introduced in Congress to repeal the requirement. Unless overturned, the rule threatens to impose enormous burdens on small businesses, certified public accountants and tax preparers as they attempt to track and report a wide range of payments to contractors, vendors and others. For example, companies would be required to report business-to-business payments for airline tickets, office supplies, phone and shipping services.
The IRS is seeking comments on how to best implement the law. The IRS has proposed to exempt purchases made with credit or debit cards since they are now reported by banks and other payment processors. However, it would not be a solution for businesses that pay by check or cash, or for vendors that do not accept credit/debit cards, in part, to avoid the 2% or 3% transaction fees. Additionally, if a vendor refuses to supply a tax ID number, then the payer could be required to withhold 28% of the vendor’s payment and send that amount to the IRS.
Comments about the IRS proposed rule are due by September 29. SEMA is working with a coalition of other associations to repeal the law.
For further information, contact Stuart Gosswein at stuartg@sema.org.
Law & OrderGovernment Affairs