AICPA Urges Congress to Scrap New Regulations on Information Reporting
The American Institute of Certified Public Accountants (AICPA) has raised its resistance against the new requirements for businesses and rental property owners when reporting necessary information, calling on the Congress to repeal them as they are uncalled-for especially now that time demands more focus on profitability and sustainability.
The Patient Protection and Affordable Care Act and the Small Business Jobs Act of 2010 are considered by the AICPA to be “burdensome information reporting requirements” as they add up costs to the process of reporting by the businessmen.
In its letter to the Congress, the AICPA said that an increase in profitability would yield more tax revenues than the “expansions to the reporting requirement.”
Both the Patient Protection and Affordable Care Act and the Small Business Jobs Act of 2010 require any business transactions in purchasing and rental, respectively, to furnish a copy of Form 1099-MISC information return for the Internal Revenue Service. The first is bound to make the submission of form 1099 mandatory by 2013, thus entailing a one year preparation. Small Business Jobs Act, on the other hand, would take effect in 2011.
The AICPA raised concerns over the burden that the new law may bring to individual taxpayers who own rental property but do not have connections in a “trade of business.” AICPA finds specific problems with “keeping records to trace down expenses, obtaining tax identification numbers and other information from providers of property and services, and furnishing Forms 1099-MISC.”
The AICPA also questioned the requirements of giving certain service providers the information forms. AICPA said the costs that will be required in the production of millions of forms and the task of negotiating with the taxpayers regarding the requirements should be considered along with the unlikely benefits that the government might get along the process.