What is in this article?:
- Congress should deal with health care 1099
- NCC urges repeal
A provision in the health care reform bill would cause farmers, ranchers and agri-business significant amounts of burdensome paperwork and should be taken out of the bill, says a Texas Tech University Agricultural Economist.
According to a recent blog post from Dr. Darren Hudson, Larry Combest Chair in Agriculture Competitiveness at Texas Tech University, the "hidden" 1099 issue in the Obama Administration's recently passed health care reform bill is an issue that needs to be dealt with by Congress before it creates significant headaches for U.S. farmers and ranchers.
Fortunately, the provision is not slated to go into effect until the 2012 tax year. That means producers won't have any new responsibilities in this regard in 2011, but would have to begin keeping track of the expenditures for purposes of issuing 1099's to any person or entity that they pay $600 or more for services rendered between January 1 and December 31, 2012.
Hudson wrapped up his post by saying that the good news for producers, and other small businesses that would be similarly affected, is that industry groups are already on the job and there are already efforts to get something through Congress that would repeal this onerous provision. Hudson also noted that even if Congress is unable to get a bill repealing the provision passed this fall, a new Congress, regardless of make-up, should have many opportunities to get the job done beginning in the spring of 2011.