Health Care Reform Bill Dramatically Increases 1099 Filing Requirement
A little noticed provision in the recently passed health care reform bill will require every payment to corporations over $600 to be reported on a Form 1099 to the IRS, including payments for the purchase of merchandise and services. This provision takes effect in 2012.
The current law requires a Form 1099 to be submitted to the IRS when your business pays more than $600 for rent, interest, dividends, and non-employee services if the payments are made to entities other than corporations. Currently, payments made to a corporation and payments for merchandise are not required to be reported.
To file the required 1099, a business will have to obtain and keep track of a Taxpayer Information Number (TIN) from every vendor before submitting the 1099 to that business and the IRS. Under current tax law, one copy of the form is sent to the IRS, and another copy is sent to the person to whom the business made the payments.
Rep. Dan Lungren (CA-3) introduced “The Small Business Paperwork Mandate Elimination Act” (H.R. 5141). The legislation would repeal the expanded 1099 reporting requirement. Lungren correctly asserts that the burdens placed on small businesses by this reporting requirement would be overwhelming.
Call your U.S. Representative today and ask them to cosponsor H.R. 5141. The House switchboard number is 202-225-3121. Ask to be connected to your Representative's office.
New Rock Slide in Ocoee Gorge Takes Out Portion of Flume Line. Highway and River Open.
Another rock slide in the Ocoee River gorge has shutdown the Ocoee No. 2 power project’s wooden flume line, which means more days for rafting in 2010. After determining that the rock at the slide site was stable, it appears that the river will be open this weekend. The Ocoee No. 2 project diverts water around the section of whitewater, which is the nation’s most popular whitewater run, for all but 115 days per year when releases for whitewater recreation are provided. So, with the flume line down, the river will run whenever TVA generates from upstream power projects in addition to the already scheduled releases. TVA said the wooden flume line, which requires specialized wood for its construction, will be out of commission for months. TVA rebuilt the flume between 1979 and 1983. It was originally constructed as a power project in 1913. The project is on the National Register of Historic Places and has a generating capacity of about 23 megaWatts.
In other slide news, I-40 has reopened at the Tennessee/North Carolina line after being closed for several months due to a rock slide.