WASHINGTON -- Congressman Bill Owens has introduced a bill in Congress to repeal a provision of the new health care reform law with a new paperwork requirement that businesses say is excessive.
In 2012 requires businesses would be required to begin sending IRS Form 1099s for every business-to-business transaction of $600 or more for both property and services.
“Small businesses are already overburdened with tax paperwork and reporting requirements,” Owens said. “There is near universal agreement that this expanded 1099 reporting requirement will only further increase the cost and complexity of complying with the tax code for small businesses. Repealing this provision before it takes effect in 2012 is critical to protecting small businesses as we continue to recover from the economic downturn.”
The expanded reporting requirement is not currently in place and is not scheduled to take effect until next year. The provision was included in the Affordable Care Act to raise revenue by reducing the “tax gap,” or the amount of income that goes unreported by large corporations, by requiring more comprehensive reporting of purchases of property and services.
“Key provisions of the health care law have already brought critical benefits to thousands of Upstate New Yorkers,” added Owens. “However, as with any broad piece of legislation, we need to revisit some of the policy and fine-tune the parts of the law that do not work. I am hopeful that the broad bipartisan support for repeal of the 1099 provision will allow us to address this issue quickly and provide small business the certainty they need to operate.”