Remember those new reporting requirements for businesses that were tucked away inside the health care bill? “Unpopular” doesn’t even begin to describe the provision.
So what’s a legislator to do in the midst of an election year? Repeal the very piece of legislation that you passed earlier in the year. Now you can take credit for both bits. Brilliant, no?
There was just one looming issue: who would get to the repeal first?
The Republicans made noise about a bill to repeal the provision but didn’t get to it fast enough. The Democrats managed to mobilize more quickly – good, right? Cause everyone is in agreement that repeal is needed. So the matter is closed. Not so fast. In true form, the Democrats couldn’t make this about one thing. They insisted on making the repeal effort part of a new tax-related to overseas businesses. Additionally (and why wouldn’t there be more?), they made an effort to do away with GRATs, long the darling of estate planners. Goodness knows what else they tried to throw in.
The Republicans, of course, balked at tying the repeal to these other matters – they wanted to pass the repeal on their terms.
Despite the fact that the Democrats control the majority of the House, the vote was tied to a procedural rule that required 2/3 support, which the Dems don’t have. The matter failed.
So, to recap: a repeal of the new 1099 reporting requirements, supported by both Democrats and Republicans, managed to fail on procedural grounds. Of course it did. Yaay, Congress.
If this isn’t repealed I suggest that even if you can file these 1099’s electronically you file paper versions instead. There will be so much paper from these that the IRS won’t dig out until the next millennium.
Inefficiency at work!
The number of 1099s required to be processed would keep our (accountants) servers and the IRS servers working 24/7/366 🙂
Thank you for the awesome post!
In 2012, the health care reform law will require ALL businesses, governments and charities to issue 1099 forms to vendors they pay over $600 for goods and services. This will undoubtedly financially crush thousands of small-and-medium-sized businesses who work for these companies. Read alliantgroups’ (www.alliantgroup.com) Dean Zerbe’s take on the 1099 burden and where its repeal currently stands in Congress and the administration. http://bit.ly/cG7USr
Just found your website. It’s great. Tax info that I can understand!