Home > Accounting, business > Healthcare Reform Law and Increased 1099 Reporting Requirements

Healthcare Reform Law and Increased 1099 Reporting Requirements

Get ready for January 2012.

That’s the date that the Patient Protection and Affordable Care Act, also known as the new healthcare reform law, goes into effect.

So to help fund these health-care changes, a small provision included in the law expands current 1099 reporting requirements.  Thomas Cheplick of Health Care News explains:

Small businesses are discovering a little-known provision in President Obama’s health care law may exponentially increase the amount of paperwork they have to submit to the Internal Revenue Service (IRS) every year.   Section 9006 of the Patient Protection and Affordable Care Act dramatically expands 1099 tax reporting requirements, which could effectively put U.S. small businesses at a distinct disadvantage to larger businesses. It will force companies, starting in 2012, to submit to the IRS a 1099 tax form each time they spend a total of $600 on anything—even items such as office supplies, contracting work, or buying a new computer.

You may want to check this out for yourself.  The IRS and Treasury officials stressed that they want to minimize the compliance burden and they are now taking suggestions.

Check out your current situation and see how this affects your business.  For further information, you may want to read Laura Saunders’ Tax Report in the WSJ this weekend.

Let me know if I can be of help.

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