A couple of weeks ago we reported that the AICPA had come against some of the more burdensome requirements originally included in the new Patient Protection and Affordable Care Act regarding new 1099 information reporting requirements. Namely a provision requiring businesses to report any purchase from a vendor (including corporations) of goods or services worth $600 or more. The main concern we noted was 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.’

Recently members of the Senate have responded to this outcry with bill amendments to the Small Business Jobs Act hoping to relieve this and other issues.

A new modified version of the Business Jobs Act including an amendment to repeal the expanded 1099 filing requirement is scheduled for vote by the Senate on September 14th. However there are others who have further ideas in regards to the bill’s improvement including:

• Raising the threshold for reporting transactions from $600 to $5,000.
• The elimination of the $15 billion Prevention Trust Fund, which provides access to preventive services, including cancer screenings and smoking cessations programs.
• Repealing tax cuts for the five largest oil companies, allowing them to deduct 6% of their income from oil and gas production from their tax liability.

The bottom line is that the bill isn’t yet complete – and there is still time for improvements before it becomes effective in 2012. If you’d like to read more information on this issue, click here.

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