In the first rollback of his health care plan, last week President Obama signed a bill repealing the onerous 1099 reporting provision. This provision, slipped into the Health Care Bill, targets small businesses and independent contractors by requiring them to file a 1099 form with the IRS for the cumulative purchases they’ve made from any other individual or business with whom they’ve done more than $600 of business in any year. The compliance cost with this provision would likely have exceeded any additional revenue obtained by the IRS. The accountant at the small business where I work estimated needing to file a couple hundred extra 1099’s had the provision taken effect, requiring at least a man day’s effort (“But Will They Cover Mental Health Services for Accountants“).
More coverage from Reason here.
