A recent article by the Ohio Society of CPAs (click to view) addressed concerns with the new reporting requirement for 1099 forms included in the Patient Protection and Affordable Care Act passed in March 2010. The act contains a provision in which businesses would be required to issue 1099s for all purchases of goods or services greater than $600 per year. Obviously, this change creates an undue burden on business and would become a compliance nightmare. Both the Ohio Society of CPAs and the American Institute of CPAs have expressed their concern to Congress and urged that the change be repealed.
This article comes on the heels of an unsuccessful attempt by the House to approve the Small Business Tax Relief Bill of 2010 (see August 2 Insight by Ronald Kramer) to eliminate the new Form 1099 requirement. Hopefully, the continued outrage by businesses and their advisors will be successful in removing this expanded reporting requirement.
Schneider Downs provides accounting, tax, wealth management and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.