IRS Delays 3% Withholding Requirement to 2013

on .

Hearing Scheduled in House Small Business Committee
The Internal Revenue Service (IRS) issued final rules last week that delay the 3% withholding requirement on government contracts until 2013. Under this arrangement, the withholding and reporting requirements will apply to payments made after December 31, 2012.

Additionally, the House Small Business Committee will hold a hearing on May 26 in order to more thoroughly address the 3% requirement. A repeal bill in the House, H.R. 674, originally introduced by Rep. Wally Herger (R-CA), has also garnered more than 100 cosponsors.

The delay drew cheers from prominent lawmakers, who were encouraged by the IRS' decision, but are still hopeful for a full repeal. "This decision couldn't come at a better time. Small businesses are pinching pennies and cannot afford to receive reduced payments for government contracts," said Sen. Mary Landrieu (D-LA), chair of the Senate Committee on Small Business and Entrepreneurship. "Many small businesses are already suffering, trying to make payroll and expand their businesses, and this rule would close the book on too many small businesses. While the delay is a move in the right direction, I am also committed to working with the Finance Committee to repeal this requirement that harms small businesses."

Senate Repeals Controversial 1099 Provision, House Holds Hearings

on .

House Ways and Means Committee Chairman Predicts Repeal Action Before March

After several failed attempts in the last Congress, the Senate finally voted to repeal the controversial 1099 requirement, originally passed as part of the health care reform bill.

In a bipartisan, 81-17 vote, the Senate agreed to erase the provision that would've required small businesses to file an Internal Revenue Service form 1099 for every vendor from whom they annually buy $600 worth of goods or services. The measure was originally enacted as a revenue generator, but quickly drew the ire of small business owners and advocacy associations nationwide, eventually becoming universally reviled.

Heavy Talk in State of the Union on Small Businesses, Trade

on .

President Barack Obama delivered the annual State of the Union address with a bit less of a partisan, pep-rally atmosphere than has been present at the speech in recent years, and it certainly carried far from celebratory tone over achievements of the last year. Much of the speech read like jet another open love letter from the president to the business community, especially smaller operations, that White House is serious about improving conditions for U.S. industry.

“Red Flags” Clarification Act Signed Into Law

on .

The "Red Flags" Clarification Act of 2010 was signed into law this past weekend.

While the law has been couched as a relief for the nation's small businesses from the burden of the Federal Trade Commission's (FTC's) regulations, many doubts linger surrounding the constituency of trade creditors, who, despite the new law, may still be required to have a "Red Flags" program in place as the statute originally dictated.

FTC Applauds “Red Flags” Clarification Act

on .

Federal Trade Commission (FTC) Chairman Jon Leibowitz recently applauded Congress' passage of the "Red Flags" Clarification Act of 2010, admitting that, in their original form, the rules went too far.

"We're pleased Congress clarified its law, which was clearly overbroad," said Leibowitz a recent press release. "Now we can go forward with less litigating and more protecting consumers from identity theft. I want to express my appreciation to Congressmen John Adler (D-NJ) and Mike Simpson (R-ID), and Senators John Thune (R-SD) and Mark Begich (D-AL), for their excellent work in resolving the uncertainty created by Congress."

BREAKING: House Passes “Red Flags” Legislation, Bill Headed for Passage

on .

The U.S. House of Representatives approved legislation amending the application of the "Red Flags" Rule Tuesday night. The bill, the Red Flags Clarification Act of 2010, was passed by voice vote and now heads to President Barack Obama's desk for signature into law.

According to Rep. Paul Broun (R-GA), one of the bill's champions in the House, the bill would exempt many small business owners and other unrelated businesses from the burdensome regulations, promulgated under the Fair and Accurate Credit Transaction Act of 2003 and due to be enforced by the Federal Trade Commission (FTC) at the end of this month.

Senate Quietly Passes Red Flags Clarification Act

on .

The Senate very quietly passed a bill exempting many firms from the Federal Trade Commission's (FTC's) "Red Flags" rules this week.

In the Red Flag Program Clarification Act of 2010, the Senate voted by unanimous consent to amend the Fair Credit Reporting Act's (FCRA's) definition of "creditor," offering further clarification on one of the "Red Flags" rules' vaguest provisions and ultimately limiting the scope of the regulations. Specifically, the bill further defines a creditor as any entity who, in the ordinary course of business, obtains or uses consumer reports in connection with a credit transaction; furnishes information to consumer reporting agencies in connection with a credit transaction; and advances funds "based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of that person."

Whitehouse Bankruptcy Bill Held Over In Latest Business Meeting

on .

Sen. Sheldon Whitehouse's (D-RI) bankruptcy bill was held over again in the Senate Judiciary Committee's latest business meeting.

S. 3675, the Small Business Jobs Preservation Act, was on the agenda for the meeting on November 18, but the Committee set the bill aside, choosing instead to advance a bill with broad bipartisan support (S. 3804, the Combating Online Infringement and Counterfeits Act).

Republicans Win House, Gain in Senate; But Questions Abound for Industry

on .

The Republican party can claim a fairly resounding victory in Tuesday's midterm election by taking a majority in the House of Representatives and cutting into the Democrat's super-majority in the Senate. However, though small business appeared to pine for such results, the 2010 race may have left more questions than answers. Chief among them may be: Will there actually be a massive improvement made for small businesses in the areas of manufacturing and credit? The jury on that could remain out well into the 112th Congress.

SBA, Commerce, Treasury Among Agencies Accused of Blocking Independent Watchdogs

on .

Two high-ranking Republican Senators recently criticized 13 federal agencies for hamstringing their own respective inspectors general (IGs), who serve as the agencies' independent watchdogs.

Following the results of an April survey of 69 federal inspectors general, which asked whether they had encountered any interference from the agencies they were charged with monitoring, Senators Chuck Grassley (R-IA) and Tom Coburn (R-OK) recently issued letters to the 13 agencies whose IGs suggested that they had received a lack of complete cooperation, whether in the form of blocked access to information or bureaucratic barriers that impeded effective investigations. Among those agencies receiving letters were business and financial divisions like the Small Business Administration (SBA), the Department of the Treasury and the Department of Commerce.

National Association
of Credit Management

8840 Columbia 100 Pkwy.
Columbia, MD 21045
Phone: 410-740-5560
Fax: 410-740-5574

Let's Get Social!

NACM's Preferred
Software Providers

Discover More About NACM

Credit Congress
NACM's Annual Conference

Our History
Over 100 Years of History