WASHINGTON (April 15, 2011) The National Association of Mutual Insurance Companies (NAMIC) released the following statement from senior vice president of federal and political affairs Jimi Grande in response to President Obama’s signing of HR 4, repealing a 1099 reporting provision from the healthcare reform law.
“With the repeal of this provision, small businesses no longer have to worry about a requirement that never should have been passed in the first place. NAMIC appreciates the President and members of Congress finally working together to fix this ‘flaw’ in the healthcare reform law. We hope both sides will long remember that this mistake was made in the first place and commit to never allowing it to happen again.”
Had the repeal not been enacted, any business expense of more than $600 in a single year would require the filing of a separate 1099 form with the Internal Revenue Service beginning in 2012. Current law requires a filing for those expenses paid to an unincorporated entity, but the new requirement would require filings for mundane expenses such as phone or internet service and office supplies.
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