Wednesday, April 28, 2010

Health Care Bill HR3590- #1645 - Costly IRS Mandate Slipped Into Health Bill - Cato Institute



Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly. A few wording changes to the tax code’s section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare. Under current law, businesses are required to issue 1099s in a limited set of situations, such as when paying outside consultants. The health care bill includes a vast expansion in this information reporting requirement in an attempt to raise revenue for an increasingly rapacious Congress.   Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules:   Read more about the new rules........

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