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Thank you AICPA and other organizations! 1099 reporting is dead, at least for now

Apr 8th 2011
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So Congress has removed the 1099 issue that was part of last year's health care legislation. Businesses can breathe a sigh of relief, at least for now. I applaud the AICPA and the countless other professional organizations that let their voices be heard in opposition to this legislation. What's most impressive is that a grass roots movement within the business community took a stand and refused to back down until the 1099 legislation was defeated. Without the need for pickets or parades, concerned individuals and organizations spoke out, with logic and intelligence, and Congress and the White House listened.

We as citizens should never lose sight of the fact that our voices can be heard, that there is a place for intelligent discourse, and that when something is wrong, it is within the power of the citizenry to confront our legislators and work together to make a change.
Clearly the members of Congress who enacted the Patient Protection and Affordable Care Act (aka ObamaCare) felt strongly enough about the need for additional 1099 reporting to include that legislation in the bill in the first place. And using the 1099 reporting process as a means to tackling the tax gap is not a completely unreasonable means to an end. However, the method by which this bit of law was hidden in a larger bill that was all but guaranteed to pass put a bad taste in the mouths of all concerned, and the idea of requiring businesses to do more recordkeeping and reporting at a time when economic conditions are forcing businesses to cut back in so many areas made the timing of this legislation unpopular as well.

It's likely that the time will come, in the near future, when nearly all payments will be made electronically, and the recordkeeping and reporting process on those payments will be automated, which will make much of the 1099 reporting unnecessary. But for now, all businesses should take a moment to thank those who stood up and said "No!" to the 1099 legislation and who were so successful in their efforts.

Best regards,
Gail Perry, Editor-in-Chief


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