Associations from across the country joined in their opposition to the new 1099 requirements in the Patient Protection and Affordable Care Act by adding their names to the ASAE letter opposing the onerous paperwork burden. ASAE’s letter, which was delivered to Congress in September, had signatures from over 550 association executives, staff, volunteer leaders, and corporate partners in 49 states and territories.
Enacted as part of the landmark Patient Protection and Affordable Care Act passed by Congress in March, the Form 1099 requirements force all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. The change, scheduled to take effect in 2012, could result in associations having to issue hundreds or even thousands of forms each year, track cumulative payments to vendors, and obtain tax identification information from each vendor. The National Taxpayer Advocate has estimated that 40 million businesses, charities and associations would be impacted by this new requirement.
You can view the letter and signatures here.