House fails to pass bill repealing unpopular information reporting changes
On July 30, the House of Representatives with a vote of 241-154 failed to gain the necessary 2/3 vote for passage of H.R. 5982, the Small Business Tax Relief Act of 2010. The bill would have repealed a controversial section of the Patient Protection and Affordable Care Act (Health Care Act P.L. 111-148) that places new information reporting burdens on businesses after Dec. 31, 2011 requiring: (1) businesses that pay any amount greater than $600 during the year to non-tax-exempt corporate providers of property and services will have to file an information report with each provider and with IRS; and (2) businesses will have to file information returns with respect to any person (including corporations) that receives $600 or more from the business in exchange for property and merchandise.
For more information please call Sherry Radmore at 714.569.1000