Statement of SBA’s Chief Counsel for Advocacy Winslow Sargeant on expanded reporting requirements
Release Date: Saturday, November 6, 2010
Release Number: 10-13 ADV
Contact: Patrick Morris (202) 205-6941, patrick.morris@sba.gov

“I am surprised and disappointed by Senator Snowe’s portrayal of the Office of Advocacy’s actions regarding the expanded IRS Form 1099 reporting issue. The Office of Advocacy has been actively involved with the small business community and the Internal Revenue Service on this issue. We hosted a roundtable for small businesses and their representatives to hear their thoughts and concerns regarding the 1099 requirement. Senator Snowe’s staff was invited to participate. Immediately after this roundtable, my office initiated a conference call with the IRS regulatory attorneys responsible for drafting guidance. We were able to report small business concerns directly to IRS on the expanded reporting requirement. I personally met with the IRS Chief Counsel earlier this week and discussed the input that I have received from small businesses on this issue. During all this time my staff has informed Senator Snowe’s staff about our activities.

“Advocacy chose not to provide public comment to the Treasury Department and the IRS. Their request was for information on ways to reduce the burden of reporting and record keeping required with the Form 1099. At our roundtable the small business participants unanimously indicated that the request for information did not address the full impact of the 1099 burden on small business. Nevertheless, Advocacy made its concerns regarding the guidance document known to the IRS through its confidential interagency process, which is a tool Advocacy frequently uses and that, on numerous occasions, has had an even greater result than a public comment letter.

“The issues facing small business are numerous, challenging and complex. We will continue to stand firmly on the side of small business and independently represent their interests.”

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers.