Washington Watch - February 15, 2012


Washington Watch - February 15, 2012

Small Business Startup Bill Introduced In Congress

The House has introduced another piece of legislation for future self-employed individuals. The Help Entrepreneurs Create American Jobs Act of 2012 makes permanent the deduction for startups at $10,000. If left to expire, the deduction reduces to $5,000.

“We applaud Representative Johnson (D-Ga.) for introducing this important tax deduction for those Americans looking to become self-employed, said NASE Director of Government Affairs Katie Vlietstra. “The permanent deduction, allows for individuals to plan prudently their entry into self-employment and not feel rushed to start their own business before a looming end of a vital tax benefit. We look forward to supporting this effort and recommend swift passage.”

A measure extending this startup benefit was also introduced in the Senate. Stay tuned to the NASE’s weekly e-newsletter, Washington Watch, for updates

IRS Pulls Back From Credit Card Reporting Requirement

In a move to alleviate growing concern within the small business community, the IRS announced last week that it would not require reconciliation on the 2012 form nor do they intend to require reconciliation in the future. Popularly dubbed 1099-K, the IRS would have required all business, including sole-proprietors, to reconcile credit card transactions.  

The National Association for the Self-Employed strongly advocated against the 1099-K line as it placed a significant burden on the tax filer and would potentially create an misguided audit target for the IRS. While we are pleased with the announcement, the NASE still supports legislation in both the Senate and the House that would restrict the IRS from reversing its decision and require reconciliation in the future.

Read more about the NASE's position here. The IRS updated FAQ can be found here.  

Upcoming House Small Business Committee Hearings

The House Small Business Committee Subcommittee on Healthcare and Technology is conducting a hearing on small business access to broadband internet. The purpose of the hearing is to examine the growth and importance of broadband to small businesses, including the role of the federal government in providing access to rural America. 

The Subcommittee on Economic Growth, Tax and Capital Access will hold a hearing on government assistance for disaster victims. The hearing will provide members of the Subcommittee with information on the role of the federal government in long-term disaster recovery, including learning about the programs offered by both the state and federal government. There will also be expert testimony about potential consequences of legislation (H.R. 3042) that proposes changes to federal disaster loans.

Read more on the House Small Business Committee website here

Washington Watch Online

Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.

Courtesy of NASE.org