Rep. Graves presses IRS for answers on 1099 rule

Graves sent a similar letter Jun. 23 to Shulman and has yet to receive a response. 

“I am disappointed that after over three months, I have not received a substantive or even an interim response from you on this issue,” Graves writes. 

The congressman also noted in the letter that compliance with the new rule weighs heavy on the minds of his constituents.  

“During the month of August, I traveled to every corner of my congressional district, visiting small businesses and holding town hall meetings. A significant issue on my constituents’ minds was the burden and expense of compliance with this new 1099 requirement,” he wrote. 

The rule was included in the healthcare reform bill to improve tax compliance. But industry professionals, including the Taxpayer Advocate, have questioned its ability to make taxpayers comply and think it will be overly burdensome for small-business owners to implement. 

The public comment period for the rule ended on Sept. 29. Graves said he hopes to hear from Shulman soon.