Repeal of Form 1099 Tax Mandate?
In the wake of Republican victories in Congress and the U.S. Senate, President Obama has apparently opened the door to the possible rollback of at least one controversial aspect of federal health reform.
One of the costly provisions of the healthcare reform is the mandate requiring all businesses to file a miscellaneous 1099 form with the IRS for all purchases of property and services that exceed $600, starting in 2012.
Unless this provision is repealed, businesses will have the burden and expense of tracking all purchases and then reporting the dollar amount of sales on a 1099 form whenever the $600 threshold is reached.
In remarks after Election Day, President Obama said that certain heath reform provisions could be on the table for negotiation</a>—including the Form 1099 mandate.
The president said he wants to work with the new Congress and its Republican House majority to speed the nation’s economic recovery. Businesses believe this mandate would significantly increase their administrative burdens as well as open them up to increased audits.
The measure was included in the legislation to raise about $17 billion to help pay for some of the cost of health reform.
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