IN THE NEWS.......IN THE NEWS......in the news......In the News......In the News..... 1099 Reporting Repeal Amendment Passes This week the Senate approved an amendment to the FAA Air Transportation Modernization and Safety Improvement Act that will repeal the recent 1099 paperwork mandate. The amendment was offered by Senator Debbie Stabenow (D-MI). The 1099 paperwork mandate was a provision of the health care bill passed last year that imposes new tax reporting requirements, on every business in the U.S., including those in the horse industry, beginning in 2012. There were several attempts to repeal the 1099 requirement last Congress which failed. “We are glad the Senate has taken this step towards repeal of the new 1099 requirement,” said AHC president Jay Hickey. “There is wide agreement that this is a burdensome requirement for businesses. However, during the last Congress disagreement over details got in the way of repeal. We hope the overwhelming support of this amendment is proof that everyone is now on the same page.” The Patient Protection and Affordable Care Act (“Health Care Bill”) that was signed into law last year included a provision broadlyexpanding 1099 IRS form reporting requirements starting in 2012. Currently the law requires 1099s to be sent to any independent contractor that receives $600 or more from a business in a year. The new requirement requires 1099s be sent not only to independent contractors but also to any individual or corporation from whom a business purchases a total of $600 or more in goods or services in any given year. Its stated purpose is to identify unreported taxable income, fraudulent tax deductions, and increase tax compliance. This new requirement will greatly increase the administrative burden on all businesses, particularly small businesses, including those in the horse industry. For example if a horse farm buys $600 worth of hay and grain from a particular retailer, or purchases buckets and bridles for a total of $600 from a tack shop, or an even buys offi ce supplies of $600 from a supply store over the course of the year, or an individual buys a computer for $700 from a local store, they are required to issue each business a 1099 form that must be completed and returned to the IRS. This reporting mandate places an added burden on each business involved. The horse businesses would have to collect information and tax identifi cation numbers for every entity they do $600 worth of business with and mail them forms and the business receiving the forms must complete them. The Stabenow amendment repeals only the new reporting requirements. Businesses would still have to send 1099s to independent contractors. The Senate must now approve the FAA Air Transportation Modernization and Safety Improvement Act which will then be considered by the House. Repeal of the 1099 provision has broad bipartisan support. But the larger bill may or may not pass both the Senate and the House. Therefore, repeal at this juncture is not assured. Senator Mike Johanns (R-NE), Senator Max Baucus (D-MT), Congressman Dan Lungren (R-CA), and Congressmen Steve Scalise (R-LA), have each introduced stand alone bills that would also repeal the 1099 provision. “The AHC will continue to work in support of repealing the new 1099 paperwork mandate,” said Hickey. “Repealing the 1099 mandate has broad bipartisan support and we are very optimistic that a fi x will be in place before the new requirement goes into effect in 2012.” 20<strong>11</strong> AQHA Convention Marketing Forum All AQHA members are invited to attend the Marketing Forum during the 20<strong>11</strong> AQHA Convention to discuss several important industry issues. 20<strong>11</strong> AQHA Marketing Forum - Friday, March 4, 2-4:30 p.m., Grapevine, Texas; Forum discussion points: • Emerging Markets -- What do Europe and South America hold for AQHA and other breeds? How can and does the government help? Mike Phillips, United States Livestock Genetics Export/USDA • China -- The Final Frontier David Snodgrass, managing director of LTI Associates, China • New Tax Laws for Horse Owners Jay Hickey, American Horse Council president • By the Numbers -- What Will 20<strong>11</strong>-2012 Bring? Trent Taylor, AQHA treasurer, executive director of operations • Medications and Thresholds Dr. Steven Schumacher, United States Equestrian Federation This marketing forum is open to all interested AQHA members who register for Convention. To register go to www.aqha.com/ About/Content-Pages/About-the-Association/AQHA-Convention/Convention-Registration-Form.aspx SD Considers State Rodeo Team RAPID CITY, S.D. – Rodeo is the offi cial state sport of South Dakota, and two-time World Champion Paul Tierney would like to see rodeo cowboys become something like the state’s offi cial ambassadors for tourism. Using an already thriving union between the cowboy sport and the Wyoming Travel & Tourism agency as his model, Tierney is proposing formation of a Team South Dakota to get the word out on the state’s many attractions. “The team could have a patch or logo on their shirt,” Tierney told the Hot Springs (S.D.) Star, “identifying them and the state; they would be offered an incentive for each time they made an appearance for South Dakota tourism. “This really is a way to help draw some attention to the state as far as tourism is concerned, by partnering with our PRCA competitors. (In Wyoming the cowboys) are basically their ambassadors, their mobile advertisement for the state.” Tierney, a 2008 inductee in the ProRodeo Hall of Fame, Miss Rodeo South Dakota Vanessa Ternes and others were set up all last week in the EquiMedic booth at the Black Hills Stock Show & Rodeo to get people to sign a petition showing their support for the initiative. Ternes said in a recent speech that each state legislator who has been approached about the idea has expressed his support. “We think it’s a good idea,” Tierney said. “It puts money in (the cowboys’) pockets and gets South Dakota (more attention) as a tourism destination.” Tracy & Dusti Swan • West, TX • 254.592.6406 Subscriptions: www. <strong>BarrelRacingReport</strong>.com Email: info@barrelracingreport.com The Barrel Racing Report is emailed weekly, every Tuesday night, 52 weeks per year by Tracy and Dusti Swan, Dublin, TX. The Barrel Racing Report is designed to provide horsemen and women one source for up to date barrel racing results, informative industry articles, sales results and breeding information. All results have been approved by event producers or association personnel. All breeding information is provided via AQHA or APHA and is approved content. The information provided in the Barrel Racing Report is believed to be accurate. The Barrel Racing Report will not be responsible for mistakes. However, we would like to correct any that we may have. Please give us a call or email us at dusti@barrelracingreport.com. BARREL RACING REPORT FEBRUARY 8, 20<strong>11</strong> PAGE 2
BARREL RACING REPORT FEBRUARY 8, 20<strong>11</strong> PAGE 3