Health Reform Law Swamping U.S. Businesses With New Tax Paperwork

New Law Will “Swamp U.S. Businesses With A Flood Of New Tax Paperwork,” While “Companies Are Examining … Dumping The Health Care Coverage They Provide To Their Workers”
“Internal Documents Recently Reviewed By Fortune, Originally Requested By Congress, Show What The [Health] Bill's Critics Predicted, And What Its Champions Dreaded: Many Large Companies Are Examining A Course That Was Heretofore Unthinkable, Dumping The Health Care Coverage They Provide To Their Workers In Exchange For Paying Penalty Fees To The Government. That Would Dismantle The Employer-Based System That Has Reigned Since World War II.” “(“Documents Reveal AT&T, Verizon, Others, Thought About Dropping Employer-Sponsored Benefits,” Fortune, 5/6/10)

“An All-But-Overlooked Provision Of The Health Reform Law Is Threatening To Swamp U.S. Businesses With A Flood Of New Tax Paperwork. Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year. The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.” (“Health Care Law’s Massive, Hidden Tax Change,” CNNMoney, 5/5/10)

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