You are here:HomeIssuesHealth Care Reform2010PIA Blasts 1099 Requirement in Healthcare Law

PIA Blasts 1099 Requirement in Healthcare Law

PIA National is calling for the repeal of a provision of the federal health care law before it comes into effect in 2012. Section 9006...
September 14, 2010

PIA National is calling for the repeal of a provision of the federal health care law before it comes into effect in 2012. Section 9006 of the new healthcare law requires that businesses of all sizes, as well as governments and nonprofits, file a 1099 form with the Internal Revenue Service reporting any purchases they make of goods or services of $600 or more in a tax year from any individual or business, including corporations. Currently, businesses only need to file 1099s when they buy services and only when the vendor is an unincorporated person or business.

A press release was issued by PIA National on September 7 calling for repeal. Since that time, several articles about our effort were published in leading industry publications. The National Underwriter did an article, quoting PIA National Executive Vice President & CEO Leonard C. Brevik saying, "This places an unacceptably onerous burden on businesses of all sizes. Small business is the growth engine of the American economy, and this provision throws sand into that engine." Aritcles also appeared in A.M. Best's BestWire and the Insurance & Financial Advisor.

An amendment sponsored by Sen. Mike Johanns, R-Neb., would revoke Section 9006 of the Patient Protection and Affordable Care Act. The amendment will be offered as early as this week on the Senate floor to another Johanns bill, S. 3578, the Small Business Paperwork Mandate Elimination Act. Sen. Bill Nelson (D-Fla.) will offer a competing amendment to limit, but not repeal, the 1099 requirement. PIA prefers the Johanns bill.

Click here to read "PIA Joins Goups Concerned By Health Tax Provision" (National Underwriter 9/10/10)
 
Click here to read "Senate to Consider Repeal of Health Act's Reporting Rule" (BestWire 9/10) 

Click here to read "PIA Asks Congress to Kill 'Paperwork Burden'" (Ins. & Financial Advisor 9/8/10)

Filed under: