Illinois Congressman Aaron Schock made news last year when he was featured in a Men’s Health Magazine article. The fitness fanatic is known for his daily 5-mile run, strenuous work-outs and 6 pack abs.
Schock made news this week as he, along with Congressman Bobby Schilling, introduced a bill in Congress to exempt small business from the onerous 1099-K reporting requirements.
The bill targets a new requirement for merchant card and third-party network payers to report the proceeds of payment card and third-party network transactions, such as credit and debit card transactions.
The Housing and Economic Recovery Act of 2008 requires the IRS to collect a 1099-K from third-party payment entities, such as credit card companies. The 1099-K will show all credit transactions within a merchant’s business for the year.
However, according to Schock and Schilling, the IRS is using the 1099-K to add extra burdens on small business by requiring them to reconcile this third party report with the business’s own internal numbers, which was not the original goal of the law.
Since many small businesses don’t have the resources to cross-reference and reconcile their own internal numbers with third-party numbers, the reconciliation requirement increases the accounting workload and costs for small businesses.
You can find out more about the “1099K Overreach Prevention Act “at http://schock.house.gov/News/DocumentSingle.aspx?DocumentID=277530
And to find out more about Schock’s fitness routine, check out http://www.menshealth.com/fitness/aaron-schock-fitness#axzz1lov6wwvx
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