Little-Acorn
04-15-2011, 02:30 PM
One of the (many) things wrong with Obamacare, was its new requirement that every purchase valued at $600 or more, must be reported to the IRS on a Form 1099. It created a huge paperwork burden on most businesses, and was scheduled to go into effect in 2012. What it had to do with Health Care, was never explained.
Well, that requirement's just been repealed.
The requirement was enacted with the rest of Obamacare in March 2010. After the November 2010 elections, identical bills were introduced in both the House and Senate, to repeal that portion of Obamacare. Both houses passed their bills, and since they were identical, no conference committee was needed. Yesterday, on April 14, 2011, President Obama signed the repeal into law.
Elections have consequences.
The repeal contains a provision saying that, to compensate for the loss of revenue to the govt caused by the repeal, certain refunds that the taxpayer would have gotten for purchasing Obamacare-approved health plans, would be reduced.
So now your paperwork will be less (well, no higher than before Obamacare was passed anyway), but you will continue to pay and pay.
Happy tax day. (even though that's April 18 this year).
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http://www.networkingphoenix.com/blog/aaronblau/2011/04/15/president-signs-form-1099-repeal-legislation.48693?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PhoenixExpertBlogs+(Phoenix+I ndustry+Experts%2C+Leaders%2C+and+Entrepreneurs+Bl og)
http://www.cbiz.com/page.asp?pid=9174
Congress Approves 1099 Repeal Bill; Obama Expected to Sign
The Senate on April 5 approved a bill (H.R. 4) to repeal controversial expanded information reporting on Form 1099 for certain business payments and rental property expense payments. The House had approved H.R. 4 on March 3, 2011. To offset the cost of repeal, H.R. 4 increases the amount of the overpayment of the health care credit that is subject to recapture.
Since both the House and Senate passed identical bills, H.R. 4 – also known as the “Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011” – will not have to go to a conference committee. Despite some reservations over the offset provision, President Obama is expected to sign the bill when it reaches the White House.
Impact. Repeal of expanded business information reporting (and to a lesser extent, repeal of rental property expense payment reporting) is certain to reduce the burden on taxpayers, especially on small businesses. The mechanics of expanded reporting would have required taxpayers to capture significantly more information for reporting.
The Obama administration acknowledged in a statement immediately following the passage of H.R. 4 that this stand-alone legislation “corrects a flaw that placed unnecessary bookkeeping burden on small businesses.” However, it clearly is not satisfied with the changes made to the health care credit, with the White House indicating that “we look forward to improving the tax credit policy in this legislation.”
(Full text of the article can be read at the above URL)
Well, that requirement's just been repealed.
The requirement was enacted with the rest of Obamacare in March 2010. After the November 2010 elections, identical bills were introduced in both the House and Senate, to repeal that portion of Obamacare. Both houses passed their bills, and since they were identical, no conference committee was needed. Yesterday, on April 14, 2011, President Obama signed the repeal into law.
Elections have consequences.
The repeal contains a provision saying that, to compensate for the loss of revenue to the govt caused by the repeal, certain refunds that the taxpayer would have gotten for purchasing Obamacare-approved health plans, would be reduced.
So now your paperwork will be less (well, no higher than before Obamacare was passed anyway), but you will continue to pay and pay.
Happy tax day. (even though that's April 18 this year).
----------------------------------
http://www.networkingphoenix.com/blog/aaronblau/2011/04/15/president-signs-form-1099-repeal-legislation.48693?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PhoenixExpertBlogs+(Phoenix+I ndustry+Experts%2C+Leaders%2C+and+Entrepreneurs+Bl og)
http://www.cbiz.com/page.asp?pid=9174
Congress Approves 1099 Repeal Bill; Obama Expected to Sign
The Senate on April 5 approved a bill (H.R. 4) to repeal controversial expanded information reporting on Form 1099 for certain business payments and rental property expense payments. The House had approved H.R. 4 on March 3, 2011. To offset the cost of repeal, H.R. 4 increases the amount of the overpayment of the health care credit that is subject to recapture.
Since both the House and Senate passed identical bills, H.R. 4 – also known as the “Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011” – will not have to go to a conference committee. Despite some reservations over the offset provision, President Obama is expected to sign the bill when it reaches the White House.
Impact. Repeal of expanded business information reporting (and to a lesser extent, repeal of rental property expense payment reporting) is certain to reduce the burden on taxpayers, especially on small businesses. The mechanics of expanded reporting would have required taxpayers to capture significantly more information for reporting.
The Obama administration acknowledged in a statement immediately following the passage of H.R. 4 that this stand-alone legislation “corrects a flaw that placed unnecessary bookkeeping burden on small businesses.” However, it clearly is not satisfied with the changes made to the health care credit, with the White House indicating that “we look forward to improving the tax credit policy in this legislation.”
(Full text of the article can be read at the above URL)