President Obama Repeals the Healthcare Reform Law’s 1099 Tax Reporting Requirement
Recent Law Passed by President Obama Helps to Save a Majority of Trucking Companies, Small Businesses
Just recently, President Obama passed a law that repeals the healthcare reform law’s tax reporting requirement. Previously cleared by the Republican-controlled House of Representatives, the new law relieves small businesses of future paperwork burdens.
The new law, which will take effect later this year, directly impacts the trucking industry, as a majority of trucking companies fall into the small business category. As a result, this law protects the overall trucking industry and other small businesses alike.
The repealed law would have required small businesses to submit a 1099 tax form to the IRS for any and all purchases exceeding $600.00. This is an incredibly unrealistic expectation for truck companies, as an overwhelming majority of trucking expenses exceed the $600 mark.
For example, each and every time an owner or operator fills his or her gas tank, the fuel cost would be at least $600. Similarly, each and every time a truck had to be repaired or serviced, that, too, would cost over six bills.
And after each $600 (or more) expense, the proposed law would have required a lengthy, expensive, and time-consuming tax submission process. This process would have proven to be a huge burden for smaller companies. Costly and requiring a great deal of resources, small businesses simply wouldn’t be able to keep up with large corporations. As a result of their size, they lack the means, the manpower, and the funds to perform the potential cumbersome task asked of them.
President Obama and American Trucking Associations were in total agreement a short time ago when the President made it a law to prevent all of these costly burdens, ultimately protecting small businesses, and especially the trucking industry.