It hasn’t happened yet but it appears that it soon will. According to The Hill, the magic number of senators, 60, have agreed to an amendment that would repeal the portion of the PPACA that added the new 1099 reporting requirements to small business owners.
That is the provision that required all small business owners to report their spending of greater than $ 600 with any vendor to allow the IRS to collect every penny of taxes they could.
My wife works with Accounts and tells me that would be a paper work nightmare. Every business throughout America would have to review their books for the prior year in January and inform the government of every place they spent $ 600 or more.
Fortunately, my small business is not that heavy with overhead expenses. Since I have an office in my house, the only vendor I pay more than $ 600 in the course of a year is my Errors & Omissions insurance. Now that I think about it, I guess I spend over $ 600 in postage as well. Other than that, the only overhead expenses my business has are office supplies and postage.
The new 1099 provisions would not affect me but several of my friends and clients with small businesses and their accountants would have several sleepless nights during January.
Fortunately, there has been enough complaint about this non-health care related portion of the PPACA by America’s business owners that the politician’s in D.C. have put aside their partisan biases and found a way to agree to get rid of it.
You can read the article from The Hill, “Johanns bill to repeal healthcare law’s 1099 provision reaches 60 co-sponsors” by clicking on the link. It lists what 60 senators are behind the repeal.
This is not law yet. For now this is still rumor and speculation but it could turn into something more.
The bill still needs to be passed in both the Senate and the House and signed by President Obama. Until that happens, the 1099 provision of the PPACA is still the law of the land.