Section 9006 has nothing to do with health care, but it's in the new health care law (H.R. 3590) signed by President Obama. The specific measure imposes a new mandate on small businesses -- a hefty paperwork requirement. For any transaction over $600, a small business will now have to 1099 it -- that means you will have to report the transaction to the IRS on Form 1099. Some small businesses are used to filing 1099 for independent contractors, but now businesses will have to 1099 every business transaction amounting to more than $600. Phone bills, printing, landscaping, equipment, office supplies, catering, water cooler deliveries, airfare -- you name it -- if your payments to these vendors and companies exeeds $600, you are required to report them to the IRS (starting 2012).
This week, Rep. Dan Lungren (R-CA) introduced H.R. 5141, the Small Business Paperwork Mandate Elimination Act. The bill repeals Section 9006 of the new health care law, and therefore the burdensome mandate scheduled to take effect in 2012. Here is the link to the legislative proposal:
http://www.thomas.gov/cgi-bin/query/z?c111:H.R.5141:
Karen Kerrigan, President & CEO
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