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Who would have thought that there was a provision in the new health care reform law, also known as the Affordable Care Act, regarding 1099’s.  Well, Time found it:
“The new Affordable Care Act (ACA) includes a provision requiring that all businesses send a 1099 tax form to any vendor from whom they purchase at least $600 in goods and services in a year. A copy of this 1099 also goes to the IRS. The provision has nothing to do with health care, except that the $17 billion in revenue generated by this new paper trail will help pay for costs associated with the new law. The idea is basically to remind vendors that hey, the government knows you sold $600 or more in goods and services, so you better pay the applicable income tax.”
read more in the Time article here
John Rogers, Kentucky Bankruptcy Attorney