Tax Legislation

/Tag:Tax Legislation

Senate Votes on 1099 Tax Reporting Amendment / Repeal

There has been no shortage of speculation about a forthcoming repeal of the 1099 reporting changes that were included in the passage of 2010’s Patient Protection and Affordable Care Act. Under the new law, companies will be obligated to perform 1099 reporting on a much larger population of vendors than in prior years*.  As a result of these changes and the subsequent debate, we need to seriously ask ourselves if it is likely that the law will ever be repealed and what, if any, affect should that have on the manner in which we prepare for the forthcoming changes. In response to the legislation Congressional Democrats and Republicans have both submitted repeals and or amendments in an effort to undo some of what many see as overly burdensome elements of the new 1099 reporting requirements.  The first wave of these efforts -amendments to raise the $600 limit and to repeal the law altogether –  were both denied by the Senate on September 14th.   This Monday, similar amendments were introduced by Senate Democrats and Republicans to the Small Business Jobs Act but… […]

Maintaining Supplier Data and Information to Maximize ERP Systems and 1099 Reporting Compliance (Part 1)

Supplier information is integral to optimizing your relationships with your suppliers and for maximizing the value from your ERP system and other automated solutions.  Used correctly, a well kept supplier master data file is a strategic asset that can be leveraged into time savings, resource savings and dollars to your company’s bottom line. The biggest [...]

The Summary of the 1099 Reporting and Tax Legislation changes

The Summary of the Tax Legislation changes Section 6041 of the Internal Revenue Code outlines 1099 reporting requirements.  The Patient Protection and Affordable Care Act includes an Amendment to Section 6041 which now requires 1099 reporting for any payments aggregating $600 to a supplier per year The new amendment will now create requirements for reporting for: All for-profit corporations (excluding tax-exempt corporations) Payments made for Property (goods, merchandise, supplies, raw materials, equipment, etc.) Companies will be required to submit accurate TIN information or face monetary penalties The provision in the health care law is aimed to reduce the gap between income that individuals and businesses make and the federal taxes they pay, which the Government Accountability Office estimates is $345 billion The Wall Street Journal says Congress hopes the new 1099 provision will collect $17 billion more in federal taxes and fees. What has been changed? […]

1099 Reporting Changes from New Health Care Tax Legislation (PPAC: Patient Protection and Affordable Care Act)

By now you have probably heard about new Tax Legislation changes that have been included as part of the new Patient Protection and Affordable Care Act of 2010.  Corporations will soon be dealing with a volume of 1099 reporting beyond their wildest fears. Congress tucked a small section into the enormous bill that amends Section [...]