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  • 1099 PPACA Reporting Requirements Under Fire

    Senate Finance Committee Chairman Max Baucus, D-Mont., and Senate Majority Leader Harry Reid, D-Nevada, have introduced a bill to repeal the expanded 1099 reporting requirements under PPACA.  As  the law stands,  businesses are required to file a 1099 report with the Internal Revenue Service listing vendors with whom they have paid $600 or more during the tax year.  The provision, which goes into effect on 2012, is projected to raise $19 billion over 10 years.

    Businesses have complained that the new reporting rules would be too time-consuming for them to meet.  Baucus and Reid said this week they hope to pass a repeal of these rules with strong bipartisan support. They have attracted one Republican co-sponsor: Sen. Scott Brown of Massachusetts.

    Last week, House Republicans passed a repeal of the overall health care reform bill, but an overall repeal of the health care reform law is not expected to go far in the Democratic-controlled Senate.

    During his State of the Union address on Tuesday evening, President Obama indicated he was willing to fix the 1099 reporting requirements. “Now, I’ve heard rumors that a few of you have some concerns about the new health care law,” he said. “So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.”

    We will keep you apprised of any developments as they occur.

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