One of the sneaky provisions in the Health Care legislation recently passed was the mandate that all businesses file 1099 information returns on all payments made that exceed $600.
We have contacted the Maryland Congressional delegation and indicated why Maryland CPAs are upset. Here are the primary reasons:
- The cost of the extra administrative burden on small businesses (and all businesses) is excessive
- The probability of IRS “matching errors” is great which will create additional unnecessary work on millions of businesses when the forms do not match tax returns and error notices are sent by the IRS
- Companies will be forced to change or add expensive software and pay CPAs and accountants to help them figure out these new provisions
Even the IRS national taxpayer advocate doubts the effectiveness of this new law.
This effectively becomes a 1099 tax on all businesses and CPAs are saying NO.
Read what our Chairman of our Legislative Executive Committee, Allen DeLeon said to BBJ reporter, Scott Dance in an article titled Maryland Business Balk at 1099 Provision in Health reform Law
Read a post by the Big Fat Finance Blog titled, Why we need the 1099 Deluge
Background the the AICPA The Coming 1099 Revolution – Are you and your clients ready?
From AccountingWeb – AICPA asks Congress to Repeal 1099s