Congress pulls tax law that would have harmed small business

4/6/2011

A recent tax law would have forced small business owners across the country to file tax forms for every person or company with whom they did more than $600-worth of business. However, the Los Angeles Times reports that Congress has since repealed the law, saving entrepreneurs across the country dozens of extra hours filing their taxes.

Small business owners have actively campaigned against the tax law since it was signed last year as a part of the healthcare reform bill. The news of the law's repeal has many entrepreneurs ecstatic, as they are already busy trying to keep their companies afloat amidst the rocky economic climate.

"We are open to working with Republicans and Democrats to improve the health reform law, and we are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses," President Barack Obama's spokesperson Jay Carney told the source. "Small businesses are the engine of our economy, and eliminating the 1099 reporting requirement is the right thing to do."

While this does eliminate some of the accounting needs of small business owners, entrepreneurs should still hire an accountant to ensure their financials are in the clear. Commercial loans can be used to acquire the necessary funds to pay for accounting services.