Monday March 7, 2022 – Remember Obama Care (Affordable Care Act)? There was a provision within the Obama Care Act which would have required businesses to send 1099 forms for all purchases of goods and services over $600 annually.
That was the part of the Bill that we needed to pass in order to find out what was in it. When Americans found out that this provision was in the Act, there was an immediate movement to repeal that reporting requirement.
The expanded 1099 requirement was not set to go into affect until 2012. But, in 2011 – before implementation – the President Obama signed a law that removes the expanded “1099” reporting requirement from the Affordable Care Act. Saying, “This is a big win for small businesses.”
Now, many are discovering a similar provision tucked in the American Rescue Plan. A plan promoted to rescue the American workers from the pandemic. The “Venmo Reporting Rule” requires all taxpayers who receive more than $600 in a cash app to receive a 1099K – which is also reported to the IRS.
The rule doesn’t change the income reporting requirements – just added mountains of paperwork to the average taxpayer’s tax return..
Recently, US Senators have introduced the SNOOP Act. An acronym for “Stop the Nosy Obsession with Online Payments.”
Attorney Steven A. Leahy reminds taxpayers of their right to object and supports the SNOOP act. So, should you!