On Tuesday, the Senate passed legislation meant to remove a controversial 1099 provision in the healthcare law. To become law, the measure needs President Obama’s signature.
Under the healthcare law, the expanded 1099 provision requires companies to report on any purchases of goods or services of over $600 annually. For more, see 1099. http://en.wikipedia.org/wiki/IRS_tax_forms#1099_series
During a March 30 Senate Agriculture Committee hearing Nebraska Sen. Mike Johanns was especially critical of what the 1099 provision would do to farmers.
“Give us a real-life view of how that will impact your operation – if you have to issue 1099s for all goods and services purchased over $600 during any calendar year,” Johanns asked panel member Stan Townsend, a Kansas farmer.
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Along with the 1099s, Townsend derided the health care legislation in general. The Townsend family takes in “several kids and our goal is to teach them a work ethic. Mama takes one and I take one. We try to teach them how to work, teach them management skills, how to use farmland. We try to develop a better person. If we have to insure those individuals, (such mentoring) would be in trouble.
“We have part-time employees. One, we had to report work on for three weeks. He had a job, took vacation, and came to help us with harvest. I’d love to have him back. But are we going to have to insure him, as well?”
As for paperwork, “I probably could make 20 purchases of at least ($600) in any given day.” Providing a form for each “would be an astronomical problem to keep track of.”