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Compliance April 15, 2011
Obama Signs Repeal of HCR 1099 Reporting Requirement
April 15, 2011 (PLANSPONSOR.com) – President Obama has signed legislation rolling back a Form 1099 tax reporting provision included in last year's health care reform law.
Reported by Rebecca Moore
The provision was intended to help pay for the health care law, and Bloomberg reports that to cover the cost of the forgone revenue, the legislation Obama signed includes provisions that will curtail health insurance tax credits in the new law.
The provision required businesses and landlords to file a Form 1099 document with the Internal Revenue Service for purchases of goods and services exceeding $600 a year (see Repeal of HCR 1099 Reporting Requirement Goes to President), but business groups worried about an avalanche of paperwork.
“Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork,” Obama said in a statement released by the White House, according to Bloomberg.