A Bipartisan Vote on the Obamacare Road to Repeal

Curtis Dubay /

Tucked away in the legislation that made Obamacare into law is a tax provision that will be a compliance nightmare for small businesses if it ever goes into effect. The provision calls for all businesses to file 1099 forms with the IRS for all transactions with other businesses over $600.

Businesses are not like individuals. They purchase lots of items in large quantities. As a result, if the Obamacare reporting requirement goes into effect as scheduled in 2012, it would create an enormous compliance burden on businesses. Businesses would have to file millions of new forms with the IRS. Small businesses would be especially hard hit, because they do not have large accounting departments that can absorb more bureaucracy like larger businesses. (more…)