So if you buy a photocopy machine for your business, you need to send a Form 1099 to the Xerox vendor. \u00a0If you spend $600 or more on gas for your company vehicles, send a Form 1099 to your gas station. \u00a0Run a small grocer? \u00a0Send Form 1099s to your milk supplier, the vegetable farmer, the corner newspaper vendor and every company that sold you equipment or supplies.
\nWhy the need for such stringent reporting?
\nIt is to recoup approximately $17 billion in fines and lost tax revenue from unreported transactions every year. \u00a0But you can imagine the amount of paperwork needed to comply with the PPCA. \u00a0This promptly caused a hue and cry from the business community and led to a motion to repeal the law. \u00a0It was passed by the House of Representatives March 3 in a 314-112 vote and breezed unchanged through the US Senate by 87-12 on April 5.
\nBut that did not address the problem of the lost $17 billion.
\nSo to solve that problem, House Republicans proposed a change to the way the government pays for subsidies under the new law. \u00a0Originally, consumers were allowed to keep much of the money when the government overpaid them. \u00a0Now, the government will recover those overpayments. \u00a0President Obama is expected to sign the repeal into law pretty soon.
\nBut besides the 1099 requirement, there are other potential problems especially for small business owners. \u00a0For instance, a tax credit that was supposed to help small employers afford health insurance turned out to be so limited hardly anyone qualifies for it. \u00a0The government has got to either change the law to make it more applicable or devise other means to help employers afford insurance.
\nTo-date, only a few portions of the law have taken effect yet the government has already granted 1,168 temporary waivers to businesses, insurers and unions who said that the law would compel them to cancel their present insurance coverage. \u00a0There will likely be more such waivers.<\/p>\n
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