The IRS has called for comments on a new information-reporting requirement for businesses.
The requirement — included in the health care reform bill, but not related to health care — would force businesses to file an IRS Form 1099 for all payments they make of more than $600 a year to providers of property and services, including corporations that provide property and services. The rule would take effect in 2012. Congress included the reporting measure in the health care bill as a revenue-raiser to offset the bill’s costs.
Nearly 40 million businesses and other entities will be subject to the new, far-reaching reporting requirements. The National Taxpayer Advocate within the IRS submitted a report to Congress last week expressing concern about the "significant compliance burden" this provision could cause for businesses and others. Sen. Mike Johanns (R-Neb.) and Rep. Dan Lungren (R-Calif.) have introduced bills — the Small Business Paperwork Mandate Elimination Act — to repeal this part of the health care bill. The NRA has joined other business groups in supporting S. 3578 and H.R. 514.
The National Restaurant Association is working on comments to send to the IRS. We welcome your feedback, particularly about the anticipated burden and any duplicative reporting this new requirement will cause. Send your questions and comments to Michelle Reinke.
