The President's 2011 Congressional State of the Union Address was delivered this Monday, just moments before this was published. According to the president, "A bookkeeping burden" buried in the health care reform laws of 2009 will be removed.
According to President Barack Obama's State of the Union Address, this year, he and congress will be "correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses."
The President drew one of his standing Ovations by alluding to the obnoxious 1099 law that was snuck into the 2010 health care reform laws. (How that issue affects recyclers is here.) The tax provision made up about two thirds of a page in the 906 page long Patient Protection and Affordable Care Act of 2009, but would have been far from harmless.
The Law called for all businesses buying over $600 worth of services or property from any individual or business to issue that person a 1099 for the year. Up until now, this had only been required for services purchased from a contractor.
The 1099 change was added to the bill to help cover costs for the health care reform. An estimated 300 billion dollars in taxes is not reported every year. The idea was that the government could now easily find some of that money.
But the downfall was the millions of unnecessary 1099s. In essence, the law was going to create a big mess for almost all small businesses, possibly adding to the burden of the recession!
Many small business owners, myself included, have a burden lifted off their shoulders. The imminent repeal of the 1099s will help us sleep easy.
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| President Barack Obama adressing congress. |
According to President Barack Obama's State of the Union Address, this year, he and congress will be "correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses."
The President drew one of his standing Ovations by alluding to the obnoxious 1099 law that was snuck into the 2010 health care reform laws. (How that issue affects recyclers is here.) The tax provision made up about two thirds of a page in the 906 page long Patient Protection and Affordable Care Act of 2009, but would have been far from harmless.
The Law called for all businesses buying over $600 worth of services or property from any individual or business to issue that person a 1099 for the year. Up until now, this had only been required for services purchased from a contractor.
The 1099 change was added to the bill to help cover costs for the health care reform. An estimated 300 billion dollars in taxes is not reported every year. The idea was that the government could now easily find some of that money.
But the downfall was the millions of unnecessary 1099s. In essence, the law was going to create a big mess for almost all small businesses, possibly adding to the burden of the recession!
Many small business owners, myself included, have a burden lifted off their shoulders. The imminent repeal of the 1099s will help us sleep easy.
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