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Repeal of
Form 1099 Requirements:
An Important Change to Health Care
Reform
Dear Friend:
Recently, we marked the one-year
anniversary of Congress passing and the President signing into
law the Affordable Care Act, the health care reform bill. This
important legislation has already provided millions of
Americans across the country improved access to affordable
care and a range of patient protections that did not exist
before. As with other landmark bills, the new law is not
perfect. As we move forward with its implementation, necessary
changes will need to be made, just as adjustments have been
made over the years to Social Security and Medicare.
A perfect example of this
occurred earlier this month, when the House voted to pass H.R.
4, the Small Business Paperwork Mandate Elimination Act of
2011. The bill would repeal the expanded Form 1099 information
reporting requirements mandated by the Affordable Care Act. I
voted for the 1099 repeal legislation, as it became apparent
that the new reporting requirements, while well-intentioned,
pose a burden to small businesses.
Currently, businesses are
required to file a 1099 only when they pay an individual more
than $600 for the purchase of services; purchases of most
goods and purchases from corporations are exempt from
reporting. Unless Congress passes and the President signs a
repeal of these 1099 requirements, starting in 2012,
businesses will have to file 1099 forms whenever they purchase
more than $600 of goods or services from a corporation or an
individual.
Repealing this provision allows
us to make a necessary adjustment to the Affordable Care Act,
and I am pleased that the 1099 repeal legislation is now under
consideration by the Senate. The Senate passed a different
version of the bill earlier this year, and the two chambers
are now reconciling them. Importantly, the House vote has
allowed this process to keep moving forward.
As always, please do not
hesitate to let me know whenever I can be of assistance.
You are invited to sign up for future electronic
newsletters. Please feel free to forward this message to
friends and neighbors you think might be interested in this
issue. Sincerely,
Jerry Costello
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