Tax filing is going to get messy for Farms and Small Businesses thanks to the new health care bill. Section 9006 of the health care bill significantly expands the requirements of IRS tax reporting for small businesses, farms and individuals.
How many times does a farmer pay $600 or more to an individual or business for incurred expenses? Don’t know? You soon will. Section 9006’s provisions require all expenditures of $600 or more to be filed in 1099 forms.
Aimed at decreasing taxes businesses actually owe the government and what they actually pay, the “tax gap,” is hardly worth the headaches to be caused by the measure’s behemoth 1099 requirements.
Day-to-day purchases, land, property, crop inputs and more are all included in this new reporting measure. The “public nightmare” as one certified account called it, will be quite burdensome, eating up hours of farmers and business owners time and forcing hundreds of new 1099s to be reported.
Section 9006 is set to take effect in 2012, but not if lawmakers have their way. Senator Mike Johanns (R-Neb) has already filed to repeal the section and several representatives have signed on as cosponsors.