Senate Takes Up Repeal of ‘Burdensome’ Law
By Brian O’Connell 12/01/10 – 11:22 AM EST Add Comment
When Congress passed the health care reform bill last year, a little-known provision requiring small businesses to notify the Internal Revenue Service of purchases greater than $600 was highlighted by critics as a symbol of the bill’s intrusiveness into the lives of average Americans.
That provision — which has nothing to do with health care, by the way — looks like it’s on the road to repeal. Officially, the “1099” provision would force businesses to provide 1099 tax forms to any business or person from which they made a purchase of $600 or more. The federal government initially defended the requirement, saying it would generate about $17 billion in additional tax revenues over the next 10 years. But businesses small and large have heavily criticized the rule, arguing against the mountains of paperwork it would cause and the expense of keeping track of what can amount to thousands of transactions every year.