That onerous Form 1099 reporting requirement that made its way into the health care reform law is sticking around for a while.
In voting on the $42 billion Small Business Jobs Act, the Senate ignored both Republican appeals to remove the burdensome requirement and Democratic bids to amend it.
The requirements would force businesses to report to the IRS any purchase of $600 or more from a vendor of goods or services beginning in 2012.
“In this economy, there is little defense for supporting oppressive regulations on small businesses that will hamper their ability to put people back to work,” R. Bruce Josten of the U.S. Chamber of Commerce told CNNMoney.com.
A bit ironic, given the nature of the bill. The Wall Street Journal's Ezra Klein reports that “the legislation includes a $30 billion lending fund, $12 billion in tax breaks, $1.5 billion for state loan programs and sundry other tax tweaks and changes meant to help small businesses get back on their feet.”
CNNMoney's Catherine Clifford says the issue likely will resurface in the Senate in the not-too-distant future. Stay tuned.
In the meantime, check out these related resources:
- The coming 1099 revolution: Are you and your clients ready? (from the Journal of Accountancy)
- Related CPE, Nov. 30: Troublesome Tax Issues for Federal Payroll Taxes, Benefits and Form 1099s
- Related book: Tax Legislation 2010 Highlights: Health Care
- Related book: Tax Legislation 2010: Patient Protection and Affordable Care, Health Care Reconciliation, HIRE and Other Recent Tax Acts: Law, Explanation, and Analysis
- Related self-study: 2010 Health Care Reform Act: Critical Tax and Insurance Ramifications for You, Your Business, and Your Clients