• NASE Participates in Women’s Research Forum
• Senate Small Business Committee Tackles Contract Bundling
• Medical Malpractice Bill Passes House
• The Many Dialects of the SBA Web Site
• IRS Headliner: IRS Offers Schedule K-1 Reminders

NASE Participates in Women's Research Forum

This week, NASE Director of Government Affairs Kristie Darien participated in a roundtable discussion on the existing pool of information on women business owners and what topics have yet to be tackled. The roundtable, sponsored by the Office of Advocacy of the U.S. Small Business Administration, the National Women's Business Council and the SBA Office of Women's Business Ownership, focused on the state of women's business research and generated ideas for future research projects.

Darien called attention to the lack of research on self-employed women and women-owned micro-businesses. "They are the fastest growing segment of the small-business population, yet we know the least about them," Darien said.

Do you have ideas for research on women business owners? Share your thoughts.
 

Senate Small Business Committee Tackles Contract Bundling

The Senate Committee on Small Business and Entrepreneurship held a hearing this week on small-business procurement opportunities. The hearing, "Small Businesses Continue to Lose Federal Jobs by the Bundle," focused on the inability of small businesses to secure federal jobs because of contract bundling -- a practice that groups several jobs together, making the opportunity too large for a small business to bid on. Hector Barreto, administrator of the U.S. Small Business Administration, and Angela Styles, administrator of the Office of Federal Procurement Policy in the Office of Management and Budget, testified, as well as several small-business owners.

Committee Chair Sen. Olympia Snowe (R-ME) said procurement policies must strike a balance between encouraging contract opportunities for small firms and promoting streamlined, high-efficiency buying practices by federal agencies.

"The bottom line is that America's small businesses continue to lose contracting jobs by the bundle, up to an estimated $13 billion, rather than benefiting from the growth in buying by federal agencies," she said. "In addition, when small firms lose contracts, the economy loses a vital source for job growth."
 

Medical Malpractice Bill Passes House

The House of Representatives passed legislation last week that would place federal caps on damages awarded in medical liability cases. The Help Efficient, Accessible, Low-Cost, Timely Healthcare (HEALTH) Act of 2003, H.R. 5, would establish federal limits on compensation for punitive damages, such as pain and suffering, including a maximum award of $250,000 or twice the economic damages.

The bill also limits the number of years after the date of injury that a person has to file suit, and covers lawsuits against health care providers and organizations. It would cap attorney fees at a fixed percentage based on the size of the award, and mandate that each defendant's share of the damages match their percentage of responsibility -- meaning if a doctor or hospital were only partially responsible for injury, they are not forced to pay 100 percent of the damages.

Supporters of H.R. 5 say that capping the damages would help control the skyrocketing cost of health care by limiting legal and insurance costs. Doctors in some states have staged walkouts over what they termed excessive malpractice insurance premiums.

"The legal system is putting a wrecking ball through our health care system," said Rep. James C. Greenwood (R-PA), the bill's sponsor.

The bill now heads to the Senate, where it is expected to face strong opposition from Democrats.
 

The Many Dialects of the SBA

Entrepreneurs worldwide who would like information in Arabic about starting or growing their small businesses can now turn to the U.S. Small Business Administration for help.

The translation of basic start-up information and the directory of small-business resources was a joint effort of the SBA's Office of Women's Business Ownership and Office of International Trade in cooperation with the U.S. Agency for International Development.

"The SBA is pleased to provide the informational tools to help people of all nationalities build a better life for themselves and their families, whether they live in the United States or are our international friends and neighbors," said SBA Administrator Hector V. Barreto.

The address for the Arabic Web site is www.onlinewbc.gov/docs/arabic/main.htm.

This is the sixth translation the Office of Women's Business Ownership has produced since the first one in Spanish in 1998. In addition to Spanish and Arabic, business start-up and expansion information is also available in Chinese, Japanese, Russian and Icelandic from the SBA's Online WBC. These translations and all the services of the Online WBC are available at www.onlinewbc.gov.

Additionally, the SBA announced its Spanish-language Web site logged more than one million hits since its launch in September 2002. The site, at www.sba.gov/espanol, was designed to provide the most comprehensive information about SBA's programs and services to the growing Spanish-speaking community.

In order to make this wealth of information and assistance more readily available and easier to reach online, the SBA also has secured the domain www.negocios.gov.

Originally launched with 80 files, the site currently has close to 200 files developed based on customer needs. They cover relevant issues such as writing a business plan, starting your own business, financing your business, technical assistance, accessing government contracts, exporting, signage and information for women entrepreneurs, among others.
 

IRS Headliner: IRS Offers Schedule K-1 Reminders

(The following “Headliners” article has been provided by the IRS Taxpayer Education and Communication office in an effort to educate micro-business owners and make it easier to fulfill their tax obligations. For more articles, or for more information about any of the information contained in this article, please contact the IRS Small Business/ Self-Employed division at http://www.irs.gov/smallbiz.)

As the preparation of 2002 federal income tax returns begins, the Internal Revenue Service is offering the following reminders regarding Schedules K-1 from Partnerships, S Corporations and Trusts:

• Report income in the proper location on individual returns as instructed by Schedule K-1 column (c).

• Avoid netting or combining income and deductions on Schedule E, except for passive activity income and deductions from Form 8582. Generally, income and related deductions (such as unreimbursed partnership expenses and the section 179 expense deduction) must be reported separately. For more details, refer to the Schedule E instructions.

• Report losses carried forward from prior years due to the at-risk and basis limitations on separate line of Schedule E. Do not combine them with amounts reported for the current year.

• Refer to Form 8582, Passive Activity Loss Limitations, for instructions on properly reporting income and losses from passive activities. Beginning with tax year 2002, filers of Form 8582 must attach all three pages of Form 8582 (including the worksheets) to their tax returns.

• Report flow-through income even if a Schedule K-1 has not been received at the time the Form 1040 is filed. Except for partners in certain small partnerships, Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), must be attached to the tax return to indicate that the partner, shareholder, or beneficiary either did not receive a Schedule K-1 or disagrees with the amounts reported on the Schedule K-1.

• Identify amended information by checking the "Amended K-1" box on the Schedule K-1. The flow-through entity is responsible for ensuring that the box is clearly marked.

In closing, as with all IRS forms, please ensure correct taxpayer identification numbers are entered on K-1s. Following these instructions will help you and your clients properly report K-1 income as the IRS continues its program of matching Schedule K-1 forms to individual returns.
 

Do any of these issues affect you? Do you want to be proactive in helping the micro-business community? Visit the NASE's Legislative Action Center and “Tell Your Small Business Story.” This will help the NASE understand - on a personal level - how key legislative issues are affecting your business and your bottom line.

For more information about any of the articles in Washington Watch, contact Maureen Petron, NASE public affairs manager, at (202) 466-2100 or mpetron@nase.org.