New York (March 4, 2011) – The following is a statement by AICPA President and CEO Barry Melancon applauding the March 3 passage by the U.S. House of Representatives of a bill to repeal information reporting requirements placed on businesses and rental property owners by the Patient Protection and Affordable Care Act and the Small Business Jobs Act of 2010:
The AICPA is pleased that the U.S. House of Representatives has passed H.R. 4, The Small Business Paperwork Mandate Elimination Act of 2011, which will repeal the extremely burdensome information reporting requirements imposed by the Patient Protection and Affordable Care Act and the Small Business Jobs Act of 2010.
In general, PPACA significantly expands information reporting requirements. Among the provisions, it compels businesses to send 1099 forms when they make annual purchases from a vendor worth $600 or more. SBJA generally requires rental property owners who are not “engaged in a trade or business” to issue 1099 forms.
The reporting requirements will deluge the IRS with millions of forms that must be reconciled using a time consuming and costly process if they are to be of any value. The AICPA has strongly advocated for the repeal of both these reporting requirements because the burden does not justify the expense to taxpayers. We urge House and Senate lawmakers to find a quick resolution to their different repeal provisions so that taxpayers will be relieved of these onerous reporting requirements under the PPACA and SBJA.