Dec 1, 2010

Avalanche of 1099's from a hidden tax change in ObamaCare bill

A Time Magazine blog entry at the link below reports on ObamaCare and the resulting 1099 logjam.

A current rule exists requiring businesses to file 1099s for cumulative annual purchases over $600, but the rule only applied to services – not goods – and excluded purchases from corporate entities. The ObamaCare bill has eliminated these two exceptions.

Section 9006 of the health care bill - just a few lines buried in the 2,409-page document - mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

The additional 1099's are intended to generate huge amounts of additional revenue to help pay for ObamaCare.

One can only imagine how much this will cost businesses.