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Health Care Bill 1099 Requirements to Kill Businesses

Hidden away in the Obamacare bill is a little noticed section that vastly expands the requirements businesses will have for tracking and filing 1099’s. Most businesses, large and small are familiar with 1099’s. When someone works for you that is not on the payroll, it is routine to report the payments to both the individual and the IRS on form 1099. And while this can be a bit of a pain, it is not such a burden that it causes massive time and expense on the part of the business.

Until now, that is.

When Nancy Pelosi said we will have to pass the bill to find out what is in it, she was not kidding. This legislation is jammed with hidden burdens and government takeovers as well as laws that will massively expand the size of the Federal Government. And much of this has nothing to do with Health Care.

Most are aware of the provisions to take over student loans, which has already happened.

Many businesses are shocked to learn that starting in 2012, any payment of $600 or more to one individual or business, including churches and charities will require the filing of a 1099.

The current law requires the frderal form only to individuals, but has been expanded exponentially by the Health Care bill.

According to CNN:

The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.

But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they’ll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.

This also means that if you drive a truck across country, you will have to issue a 1099 to every gas station from which you purchases more than a combined $600 in fuel. This unbelievable burden will require businesses to track and obtain Federal Tax Numbers for service stations, hotels, restaurants, or any place you spent $600 or more during the tax year.

Nebraska Republican Senator Mike Johanns is introducing legislation to repeal this onerous requirement. Yesterday, Virginia Right! attended a conference call where the Senator explained the provisions of the bill as well as his efforts to help small businesses from being burdened with this bad legislation by repealing the section. The audio of that call is in the YouTube video below.

There is a Democratic proposal to “fix” the requirement, but as Senator Johanns explains, this will actually make things worse. And, of course, the Obama Administration is against repeal of this totally unrelated section, as placing additional burden and expense on the sector that creates jobs is of no concern to him.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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