Policy Change Proposal Section I - Assignment Example

PL 111-148 Section 1099 Policy Change Proposal PL 111-148 SECTION 1099 POLICY CHANGE PROPOSAL 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 required to give a 1099 form to all individuals apart from employees that $600 or over in services every year. An average funeral parlor could issue anywhere from 10 to 20 1099’s every year for an outside contractor services.

Unless Section 9006 of PL 111-148 is repealed, all this will change in 2013 (Blanco, 2012). 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 This onerous provision needs to be repealed by congress through advocacy by business groups and other independent workers (Kluwer, 2012).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 States.ReferencesBlanco, J’nell. (2012). Preemptions in Federal Legislation in the 111th Congress. Darby: DIANE Publishing.Estes, Carroll. & Williams, Eva. (2013). Health policy : crisis and reform. Burlington : Jones & Bartlett Learning.Kluwer, Wolters. (2012). Law, explanation and analysis of the Patient Protection and Affordable Care Act : including Reconciliation Act impact. Chicago : Wolters Kluwer Law & Business.