The American Institute of Certified Public Accountants recently asked Congress to repeal a law that could significantly increase the amount of paperwork and record-keeping for businesses of all sizes.
The recent healthcare reform includes a passage that would force businesses to file Forms 1099 for any vendor or customer with whom they do more than $600 of business in a year. The government’s goal is to force taxpayers to be more thorough, and in the process reduce the amount of income that goes unreported.
Critics of the law say it will bury small businesses in paperwork. In its letter to Congress, the AICPA also argued that the data collected from the 1099s “will prove of little value to the government” because the sheer volume of information will be difficult for the IRS to sift through.
Click here to read the AICPA’s full letter to Congress.