Max Baucus: “today, I am introducing a bill to help small businesses across America. The Small Business Paperwork Relief Act repeals…”

“today, I am introducing a bill to help small businesses across America. The Small Business Paperwork Relief Act repeals recently enacted information reporting rules. Known as ``the 1099 provision,'' these rules would have required businesses to file Form 1099 with the IRS to report payments made to corporations for goods and certain services with the hope that that better information would help the IRS collect more of the taxes that are legally owed, and in turn, keep taxes lower for all taxpayers. Forms 1099 have been used by the IRS for decades to better track income. And in fact, this type of information reporting was proposed by the Bush administration to help better keep track of what businesses spend and earn, which helps better keep track of what they owe in taxes. But it has become clear the new rules went too far. As I traveled my home state of Montana, I listened to small business owners like Darrell Keck, owner of the Dixie Inn in Shelby. Darrell and his wife Jeanne run a tight ship, they are hard-working, and they pay their taxes. This is just one of many mom-and-pop businesses in Montana and throughout the country that told me they do not have the manpower or the software to make the new Form 1099 reporting rules work. I have listened to small businesses, I have heard small businesses, and I am responding to small businesses by offering this bill for full repeal of the new information reporting requirements.”