Data: The 21st Century Building Material
Bid, design, build, and operate. The amount of information required to take a job from bid all the way through completion is vast. With market competition ...
On Friday, July 30, the House failed to approve the Small Business Tax Relief Bill of 2010 (HR 5982). HR 5982, introduced by a Democratic member of the House, proposed to eliminate, before they take effect, the new Form 1099 reporting requirements imposed by Section 9006 of the Patient Protection and Affordable Care Act. The new burdensome 1099 reporting requirements are scheduled to take effect in 2012. Our Insight dated April 8, 2010, focuses on the Expansion of Information Reporting Requirements on Form 1099 enacted as part of the Health Care Reform legislation.
HR 5982 failed to garner the necessary two-thirds majority to pass because its cost was offset by $19.2 billion of foreign tax changes that would reduce tax benefits of U.S. employers doing business abroad. Also, earlier last week, another House bill (HR 5893), Investing in American Jobs and Closing Tax Loopholes Bill of 2010, never reached a House vote as GOP lawmakers attempted to amend it to add a provision to eliminate the new 1099 filing requirements.
It appears that some numbers of Congress are finally responding to the realization that the new reporting requirements will place an enormous, nonproductive paperwork burden on small businesses. Accordingly, we expect to see more action to repeal the new 1099 reporting requirements before they take effect when Congress returns from its summer recess. It might be wise to postpone any administrative efforts to comply with the new requirements until their fate is more clearly determined this September.
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.
The general rule under Internal Revenue Code §451 is that an item of income shall be included in gross income for the taxable year or receipt unless ...