Fox News has posted an analysis of the 1099 problem and current efforts to reform the law on its website. In case you have not heard about this problem, the health care reform law changed the requirements for businesses to file 1099 forms with the IRS. The law now requires that businesses file for the forms for expenditures of over $600.00. Most small business organizations view this as a serious paperwork burden that will result in significant expenses for small business.
A couple of recent bills proposed by Sen. Mike Johanns, (R-Neb) and Sen. Bill Nelson, (D-FL) would have either repealed the requirement entirely or would have lifted the filing requirement for any business with 25 employees or less.
According to Fox News sources, neither of the two bills are likely to receive the 60 votes necessary for passage. Obviously, this is something that small businesses should be watching and planning for over the coming year.