Good News for Women Small Business Owners
Posted by YWM on April 8, 2011
Repeal of 1099 Reporting Requirement Good for Women Small Business Owners
BPW Foundation is excited to share some good news for women business owners – the Senate has passed legislation to repeal the expanded IRS Form 1099 reporting requirement that was threatening to overwhelm small businesses with mountains of burdensome paperwork. With overwhelming bipartisan support, the Senate voted in favor of H.R. 4, the Small Business Paperwork Mandate Elimination Act, with 87 yeas and 12 nays. This bill, which already passed in the House, now goes to the President to be signed into law.
BPW Foundation supported the passage of this legislation, which prevented an onerous tax reporting requirement that would have had a substantially negative impact on all small businesses, including those owned by women. Given that women owned businesses already face additional challenges, the negative impacts of these reporting requirements are magnified for women business owners.
Last year, in a shortsighted effort to raise additional tax revenue, Congress expanded the Form 1099 requirement to force business owners to report any business expense over $600 to the IRS. According to one woman business owner who testified on Capitol Hill last fall, this would have increased her 1099 reporting by 500%. With the cost of tax paperwork on small businesses averaging $74 per hour, this could amount to businesses having to additionally spend thousands of dollars each year.
There are 7.8 million women-owned businesses in the United States – a 20.1% increase from 2002 to 2007. In 2008, majority women-owned businesses in the U.S. had a total economic impact of $2.8 trillion. That translates into the creation and maintenance of more than 23.7 million jobs, and accounts for 16% of all U.S. jobs. While BPW Foundation applauds Congressional efforts to repeal the Form 1099 reporting requirements, Congress needs to ensure that future actions do not add to the challenges these major drivers of our economy face at a time when our economy is struggling to recover from recessionary times.