AICPA asks Congress to Repeal New 1099 Requirements
By To the Point
Under the new healthcare law in the Patient Protection and Affordable Care Act is a new reporting requirement that requires businesses to report any purchase from a vendor (including corporations) of goods or services worth $600 or more.
The AICPA believes that this would put an unnecessary burden on small businesses compiling the data each year and that the information provided to the IRS wouldn’t be beneficial as it would be difficult to reconcile individual vendors from various 1099 statements in order to collect unpaid taxes.
The new reporting requirement will take effect for the 2012 fiscal year and will be reported on 1099 forms in 2013. In his letter, AICPA Tax Executive Committee chair, Alan Einhorn stated, “This expansion of information reporting may prove to be so burdensome to small businesses that we believe it will significantly contribute to the hurdles to growth and formation that businesses face. Repeal of section 9006 of the Act is the best alternative to imposition of an overwhelming compliance burden on the nation’s small business community.”
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