As a nonprofit organization we strongly oppose the new 1099 reporting requirements contained in the Patient Protection and Affordable Care Act (P.L. 111-148).
According to the American Society of Association Executives the new requirement, which was included in the healthcare bill without a public hearing or submission of public comments, would pose a major paperwork burden on all small businesses, many of whom have few employees. By requiring an employer to issue a 1099 for every $600 payment, or for any series of payments that cumulates to $600 or more during the tax year will drastically increase the amount of time staff spends on paperwork and compliance.
The provision was included as a way to raise revenue for the health care legislation, but there is no guarantee that it will do so. A July report issued by The Office of the Taxpayer Advocate reiterates that “the new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance.” While the provision may increase correct tax filings, it will certainly increase business costs.
Write your Georgia Senators (Johnny Isakson and Saxby Chambliss) today. There are two repeal amendments that will be considered Monday, November 29 on the food safety bill: SA 4702 and SA 4713
- The Johanns Amendment (S.Amdt 4702) which is a full repeal with an offset from unused stimulus funds
- The Baucus Amendment (S.Amdt 4713) which is a full repeal with no offset