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Stop the IRS dash for cash and other issues today

Here’s some good news . . . The Senate will begin its summer recess this week (the House has already adjourned.) We should be grateful for every day they’re not in Washington where they screw so many things up and still keep a straight face.

But this also presents a good opportunity. During the recess, our representatives come home to spend time in their districts to, they say, listen to constituents’ concerns. Every dealer should take this opportunity to contact them while they’re home. And, not only to oppose an issue, but to demand they get behind legislation that benefits their constituents – namely us!

For example, the IRS thinks it has finally found a pot of gold. Buried in the 2,300-page health care bill – you remember, the bill no Congressman had time to read — is a provision that, beginning in 2012, requires all small businesses to file a 1099 on every purchase of goods that exceed $600 in a calendar year. Businesses must now file 1099s when they purchase more than $600 in services from a vendor in a year. But goods — the new law adds the purchase of all goods! This will be a paperwork nightmare for small businesses like our dealerships.

So, here’s a mission: The House has already recessed without passing a bill to repeal this disaster. While your Congress person is home this month, call or visit and tell them to push repeal of the new 1099 law when they return to Washington.

TODAY, on the Senate side, however, there is action you should take right now. The Senate has not, yet, recessed. At this writing, the “Small Business Jobs Creation Act” (H.R. 5297) is being filibustered. We need that bill passed. You can call you Senator TODAY — especially if a Republican – and ask them to vote YES for cloture and YES for H.R. 5297. Simply tell your Senator: “We need the tax benefits, loan provisions, and other trade enhancements in H.R. 5297 to create jobs.”

More specifically, why do we want this bill? Look at this — it also contains: 1) An amendment that would repeal the new IRS 1099 requirement 2) Extends the SBA Dealer Floorplan Financing Program to three years and ncreases SBA loan caps for dealer floorplan financing from $2 million to $5 million 3) Provides a 100 percent advance rate for floorplan loans 4) Eliminates some SBA fees and makes other enhancements to credit availability for floorplans and business credit 5) Increases SBA 504 loans from $1.5 million to $5.5 million and micro-loans from $35,000 to $50,000 as well as increasing SBA Express Loans for working capital from $300,000 to $1 million 6) Includes more than $12 Billion in Small Business Tax Relief and establishes a new $30B Small Business Lending Fund to boost community bank lending to small businesses and 7) Provides $12B in small business tax cuts, including extending Sec. 179 expensing to $250,000, bonus depreciation and a carryback of general business credits to five years.

Now that’s a package worth the few minutes it will take to call our Senators today!

Comments

3 comments on “Stop the IRS dash for cash and other issues today

  1. C. Moore

    Norm you should send this to the fast food operators of America & 7-11 franchise operators, etc. There are far more of them than boat dealers. I’m not saying folks shouldn’t contact their reps but we are a small number even as a group & have an even smaller voice (you know those in control in Washington think boats are for evil rich tax evaiding folks). For example Do you think Senator John Kerry cares if any marine business in Mass has to file 1099′s to suppliers over $600.00???
    He won’t even support them by keeping his yacht in state waters…

  2. Captain Andrew

    I have to say. This requirement to fill out 1099s for the business purchase of goods is the most ridiculous requirement that has EVER come out of Congress!

    I just want to know one thing…”WHO IS RESPONSIBLE?!?”

  3. Jody

    Every politician who didn’t read what they voted on is responsible! And as responsible business owners, every one of us should contact our Senators and Representatives to get this repealed. Boat Dealers may not think they make a difference, but EVERY business owner is affected by this. I have a retail store that stocks over 20,000 SKUs of boat supplies and accessories. And they don’t come from just a couple of vendors or distributors. This will be a paperwork nightmare!

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