Aug 31, 2011
OSCPA and the AICPA asked members of Congress to repeal the new section of the health care law that requires businesses to report to the IRS all purchases from vendors for goods or services worth $600 or more annually.
Outrage over the new requirements spread rapidly as the IRS became inundated with comment letters, with many calling for the repeal of the requirement. The AICPA agreed telling Congress it would create unnecessary burdens and costs for small businesses to compile the data and prepare the Form 1099. The AICPA also noted that the information collected on the 1099 forms isn’t likely to be very helpful to the IRS in collecting any unpaid taxes.
“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,” wrote AICPA Tax Executive Committee Chair Alan Einhorn.
The reporting requirement, included in the Patient Protection and Affordable Care Act, is effective for purchases made in 2012 that will be reported on 1099 forms filed in 2013.
The deadline to submit comments is Sept. 29. OSCPA is actively gathering member input to the new guidance. Please share your thoughts, contact Amy Mignogna.
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