This article was originally printed in the latest issue of Numismatic News.
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Senate Finance Chairman Max Baucus, D-Mont., formally introduced legislation Nov. 15 to repeal new requirements for businesses to report payments for goods and services by filing additional 1099 forms with the Internal Revenue Service.
He said that this part of the health care reform law must change.
The 1099 provision is denounced by Republicans and Democrats alike, including President Barack Obama, as well as the nation’s coin dealers.
Rep. David Camp, R-Mich., the ranking member of the tax writing Ways and Means Committee and the apparent chairman-in-waiting, was quoted as saying “We have the votes now for 1099 repeal.”
The trick now is to find a way to offset costs without going back into the broader health care bill. The Democratic House and Senate leadership in the post-election lame-duck session of Congress and the White House want the 1099 repeal to occur as a “rifle shot,” or single issue measure, as a top priority to head off an unraveling of the entire Health Care Reform package when the 112th Congress convenes in January 2011.
The IRS 1099 reporting requirement was to be scuttled in a House/Senate Conference. The provision became law when the Senate was forced to abandon months of work and pass the House version of “Patient Protection and Affordable Care Act” (PPACA.) The 1099 issue refers to the expanded information reporting mandate contained in Section 9006 PPACA. This provision was used as an unrelated “pay for” in the PPACA and it would have been rescinded based on the merits of the provision alone had the bill gone to conference.
Unless this section is repealed, coin currency and precious metals sellers across the nation will be subjected to the data collection and information filing of IRS form 1099 on virtually all business-to-business and business-to-person transactions they make aggregating $600 or more in a year. Specifically, the provision would require any firm to file a 1099 form with each business or individual from which it purchases more than $600 in goods or services. The new requirement will take effect in 2012 unless it is repealed.
It’s still not too late for individuals and companies to let Congress know how they feel about 1099 reform. Go to www.senate.gov or www.house.gov to find your members of Congress and their websites, or telephone (202) 224-3121.
Baucus had announced plans to repeal the reporting requirements Nov. 12 during a meeting with Montana business leaders in Missoula in response to concerns the requirements would place too large a paperwork burden on small businesses.
Nicholas Pyle, a lifelong collector, is the volunteer political director of the Gold and Silver PAC and a government relations professional representing mostly food clients in Washington, D.C.