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A report from Bloomberg Business week reveals that on page 737 of the Health Care Bill approved by Congress there are 3 paragraphs that have nothing to do with health Care.
The provision inserted by Democrats on the Senate Finance Committee to help offset the cost of the bill, requires companies to report to the IRS payments of more than $600 years to any vendor. The intent is to capture $2 billion a year in taxes that goes unreported by contractors and small business.
In 2012 we Hoosiers businesses will need to get tax ID numbers and file forms for almost all suppliers and track all expenses to see which vendors meet the threshold. Spend $600 with any business and now you will have to have a tax ID number from that vendor. Local Gas station, Cell phone, FedEx and so on you will have to file a 1099.
The National Small Business Association estimates that a company will have to file an additional 75 forms with the IRS.
Representative Dan Lungren (R-Calif.), with the support of small business advocates, has introduced a bill to roll back the provision. It might be a good idea to send a email to our Representative to repeal this aspect of the bill.
