Proving her right is an all-but-overlooked provision of the health reform law that is threatening to swamp U.S. businesses with a flood of new tax paperwork.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 stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.
Now the IRS must start mopping up Congress's tax-reporting mess created by ObamaCare.
The Internal Revenue Service has begun the daunting process of figuring out how to turn the law's sweeping demands into actual rules for taxpayers.
Like many who have delved into the details of the new rules, National Taxpayer Advocate Nina Olson is concerned about their far-reaching scope and potential unintended consequences.
The new rules are aimed at reducing the "tax gap" between what individuals and businesses owe and what they actually pay.
But the cost of that paper trail could swamp the small companies, sole proprietors freelancers forced to generate it. Pennsylvania business networking organization SMC Business Councils surveyed its members and found that they currently average 10 filings a year of 1099 forms. The new rules would push that average to more than 200 filings per year for a typical small business, the industry group estimates.
A picture of my cave
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