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PIA National Urges Congress to Repeal Onerous Provision in Healthcare Law

PIA is calling for the repeal of a provision of the new healthcare law, the Patient Protection and Affordable Care Act, before it comes into...
September 8, 2010

PIA is calling for the repeal of a provision of the new healthcare law, the Patient Protection and Affordable Care Act, before it comes into effect in 2012.

Section 9006 of the 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.

"This places an unacceptably onerous burden on businesses of all sizes," said PIA National Executive Vice President & CEO Leonard C. Brevik. "If allowed to take effect, this provision will impose a substantial reporting and paperwork burden on governments, nonprofits and businesses - especially small businesses - dramatically increasing costs. This will bury small business under a mountain of needless paperwork."

"Small business is the growth engine of the American economy, and this provision throws sand into that engine," Brevik said.

The Senate is expected to take up at least two amendments to an unrelated bill next week: One would eliminate the 1099 provision; another would exempt businesses with fewer than 25 employees, raise the reporting threshold to purchases above $5,000 and exclude those made with a credit card. In the House, Rep. Daniel E. Lundren (R-Calif.) has introduced the Small Business Paperwork Mandate Elimination Act (H.R. 5141) to repeal the provision. The Senate companion bill, S. 3578, was introduced by Sen. Mike Johanns (R-Neb.).

"The IRS is already working on procedures to implement this expanded 1099 reporting requirement," Brevik said. "We need to work hard to kill it."

Click here to read PIA Asks Congress to Kill Paperwork Burden (Insurance & Financial Advisor 9/8/10)

Click here to read PIA Urges Repeal of Burdensome Provision (PIA 9/7/10)

Click here to read PIA Letter to Congress On 1099 Provision Repeal (9/7/10)

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