AICPA Supports Repeal of Burdensome
Tax Information Reporting Measure
Published
July 27, 2010
The American Institute of Certified Public Accountants told
members of Congress recently they should repeal the section
of the new health care law that requires businesses to
report to the Internal Revenue Service any purchase from a
vendor of goods or services worth $600 or more during the
calendar year.
The AICPA said it will be burdensome and costly for small
businesses to compile the data and prepare the Form
1099-MISC information return. Furthermore, the AICPA said
the information collected on the 1099 forms will not be very
helpful to the IRS in collecting any unpaid taxes that
should have been paid by the vendor because it will be
difficult to reconcile payments reported on the forms and
income reported by the vendor.
The reporting requirement is included in the Patient
Protection and Affordable Care Act and is effective for
purchases made in 2012 that will be reported on 1099 forms
filed in 2013.