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Policy Change Proposal Section I - Assignment Example

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The public policy problem is that business are required to give a 1099 to corporations and individuals, which provide more than $600 in merchandise or services to the business annually. The public policy question is whether, under IRS Code’s Section 6041, funeral homes are…
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Policy Change Proposal Section I

If changed, businesses will have to issue form 1099 to all corporations and individuals that give $600 or more in merchandise or services annually to the business.
The Health Care Act has expanded, in two meaningful ways the obligation to give form 1099s. In the first instance, businesses are required to issue these forms, not just to individuals, but also to corporations. In the second instance, the threshold of $600 is triggered by merchandise purchases, as well as for services (Estes & Williams, 2013). Starting in 2013, therefore, all funeral parlors will be required to issue forms 1099 to utilities, phone companies, and insurance companies, auto dealers, embalming fluid suppliers, monument companies, cemeteries, vault sellers, and casket sellers. The small problems faced by funeral homes in January is set to become a nightmare with regards to paperwork, especially since the payments need to be tracked, tax ID addresses and numbers collected, as well as issuance of multiple form 1099s. This onerous provision needs to be repealed by congress through advocacy by business groups and other independent workers (Kluwer, 2012). The issue should also be brought to the attention of the Small Business Administration of the United ... Read More
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