Repeal of IRS 1099 tax provision heads to president’s desk

April 11, 2011 — The Senate recently cleared legislation that would remove an unpopular tax reporting requirement from the Patient Protection and Affordable Care Act (PPACA), a provision that even the White House agreed is burdensome to many small businesses.

A provision in PPACA would require businesses, including chiropractic offices, to report and file IRS 1099 forms on all purchases of $600 or more to the Internal Revenue Service. Many healthcare groups and small business associations support the repeal of this language claiming the provision is too costly and would bury them in paperwork.

After starting debate to repeal or replace parts of the PPACA in January, Congress and the White House eventually agreed the 1099 reporting requirement should be eliminated. At press time, all indications suggest that the president will sign the bill.

Source: American Chiropractic Association, www.acatoday.org