1099 Repeal Still All Talk, Not Law

Congress had no problem sneaking in the now infamous 1099 expanding reporting requirements. But boy, they are having a devil of a time getting rid of it. The new rules, which expanded the reporting requirements significantly, were originally included in the health care bill passed over a year ago. The text, at Section 9006, was included with little fanfare and, quite frankly, in the middle of such a voluminous act, was overlooked for a few months. But when taxpayers found out about it, they weren’t happy. Many taxpayers demanded repeal. Members of Congress, red-faced about the whole thing, stared at …

Ask the taxgirl: “Real Estate Tax” In Health Care Law?

Taxpayer asks: Please tell me this isn’t so…..Under the new health care bill, all real estate transactions will be subject to a 3.8 % sales tax. This new tax is supposed to kick in 2013. taxgirl says: I’ve gotten a few questions about this so-called “real estate tax” lately. Concern about the “tax” has escalated due to a chain email making the rounds. The email, which has a few variations, looks more or less like this: This should help stimulate the real estate market! Under the new health care bill, did you know that all real estate transactions are subject …

House Looks to Vote on 1099 Measure

We apparently haven’t seen the last of the efforts to repeal Section 9006 of the Patient Protection and Affordable Care Act. If the name doesn’t ring a bell, it’s better known as the provision in the health care law which expands existing reporting requirements for businesses to issue forms 1099 to individuals and corporations providing more than $600 in goods or services during the year. My colleagues in the tax world have another name for it but my mother could be reading. Let’s just say that nobody particularly cares for the provision. Small businesses hate it. Tax pros hate it. …

Health Care Repeal Fails But Key Tax Issue Sails Through

You know how when you go to the gym at the beginning of the year, you can’t get a spot on treadmill because all of the new folks determined to make a change? All filled with vim and vigor and the best of intentions? (They’re also the ones wearing Uggs on the treadmill and talking on their cell phones but that’s another issue altogether.) The new Congress is a lot like those folks at the gym (hopefully minus the Uggs), ready to tackle anything and everything – at least at the first of the year. It was no surprise, then, …

Ask the taxgirl: Claiming Independent When You’re Not

Taxpayer asks: I was in college until May, and have been supporting myself since. I just filed my taxes for free at turbotax.com, filed as an independent, and got the email that my return has been accepted. Then my parents told me that they claimed me as a dependent so that they could keep me on their health insurance. Can I undo my taxes? taxgirl says: Dear college students, Please ask your parents what they plan on doing before you file your taxes. Love, taxgirl I get a lot of variations on this question. So my first piece of advice, …

Congress Tackles Health Care Law Repeal, 1099s

This week, Republicans in the House voted to repeal the new health care law, setting up a showdown in the Senate and practically guaranteeing a veto from President Obama. Ahhh… This is what the new political landscape is going to look like, I guess. The measure to repeal the health care law was deemed so important that it was HR 2 – the second bill introduced into the House this year. The vote passed along party lines, 245-189, with only three Democrats voting in favor; those votes came from Rep. Dan Boren (D-OK), Rep. Mike McIntyre (D-NC) and Rep. Mike …

No Vote on Health Care This Week

There will not be a vote on health care reform (and related taxes) this week. Speaker of the House John Boehner (R-OH) has issued this statement: Good morning. The thoughts and prayers of the House and the nation are with Congresswoman Giffords and her family. We’re also praying for the families of Judge Roll and all of those who were taken from us yesterday so senselessly. Among the fallen is Gabe Zimmerman, a member of Congresswoman Giffords’ staff, and I’ve directed that the flags on the House side of the Capitol be flown at half mast in honor of Gabe’s …

Ask the taxgirl: Health Care Bill Unconstitutional?

Taxpayer asks: I heard today that the courts ruled Obamacare unconstitutional. Does that mean that we don’t have to worry about those new 1099s now? taxgirl says: There are a couple of pieces to this question. First things first: the health care bill is still law. Procedurally, what happened was that a federal court in Virginia struck down the “individual mandate” portion of The Patient Protection and Affordable Care Act (the “Act” for short or what you and I call the “health care bill”). You can find that language at section 1501 of the Act which says in part: SEC. …

Senate Holds Onto 1099 Reporting Requirement

Remember those expanded 1099 reporting requirements that were included in the health care bill? It was all anyone could talk about for quite awhile. Clearly underestimating the rage of voters and business owners, members of Congress (yes, the same ones that voted it in) vowed left and right to do away with it. Apparently, those folks in Congress have a short memory. Today, the Senate had not one but two opportunities to do away with the requirement. Two separate amendments which would have addressed the 1099 issues were introduced to the Food Safety Modernization Act by Senate Finance Committee Chair …