Sometimes, the Government DOES Look Out for Us!

posted on May 03 by Amanda in the Legal Compliance, Payroll Taxes category

On April 5 of this year, the Senate voted to repeal the healthcare overhaul’s 1099 tax reporting requirements, following the repeal of the provision by the House of Representatives. President Obama then signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 into law on April 14.

What does this mean for you?

The original 1099 reporting requirement in the Patient Protection and Affordable Care Act would have made nearly every business-to-business transaction reportable to the Internal Revenue Service. The goal of the reporting was to raise nearly $19 billion to help pay for healthcare reform, and it stated that all business owners would need to report any transactions of $600 or more (or aggregate balances across a calendar year) with individuals or corporations. Previously, only payments to individuals were reportable.

Because this component of the healthcare law was repealed, that means business can continue as usual—at least for the foreseeable future. It also means less paperwork and less hassle for your small business. See, democracy does pay off!

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