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Compliance November 12, 2010
Baucus Plans Bill to Repeal 1099 HCR Clause
November 12, 2010 (PLANSPONSOR.com) – A top U.S. Senate Democrat on Friday pledged to repeal a provision of the new health care law that requires businesses to file tax forms on transactions of more than $600.
Reported by Fred Schneyer
Reuters reports that Senator Max Baucus, chairman of that chamber’s tax-writing committee, said he will bring forward a bill to drop that part of the law, which requires filing 1099 forms, after small-business groups complained it would become a paperwork nightmare.
Baucus said he is convinced by business groups’ complaints that it is an administrative burden. “I have heard small businesses loud and clear and I am responding to their concerns,” Baucus said in a statement, according to Reuters.
The provision in the health care bill requires businesses and tax exempt organizations to file 1099 forms for purchases and service transactions over $600. It was intended to ensure greater tax law compliance and raise an estimated $17 billion in revenues over 10 years to help cover the cost of expanding health coverage to the uninsured, Reuters said.
The Baucus statement is here.