A rule that would have imposed burdensome new reporting requirements on businesses has been repealed. The rule was designed to clamp down on tax cheats by requiring businesses to file Form 1099 whenever they pay more than $600 to a single vendor for goods and services. It quickly became apparent that this would be a recordkeeping nightmare and both political parties favored repeal. Wrangling over a revenue offset prevented prompt action, but Congress finally agreed on a version that under some circumstances will recapture part of a healthcare tax credit provided by the Affordable Care Act. President Obama signed the repeal legislation despite misgivings about the revenue offset.
Archive for April, 2011
Burdensome Reporting Rule Repealed
Friday, April 15th, 2011Shutdown Averted; Life Goes On
Saturday, April 9th, 2011If you were sweating it out over whether your tax refund would be delayed over a government shutdown, it appears you can rest easy. In an eleventh-hour deal, government funding will continue through the end of September. A stopgap measure will provide funding until an actual vote on the deal, expected within a few days. It’s not quite a done deal, but observers believe it’s unlikely to unravel. Government operations, including IRS processing of refunds, are expected to continue without interruption.
The deal reportedly includes spending cuts but leaves out non-budget initiatives Republicans had pushed in the areas of abortion and environmental protection.
IRS Offers Last Minute Filing Tips
Friday, April 8th, 2011We don’t republish all the tips offered by the IRS, but if you’re up against the filing deadline, the following may be helpful. (more…)
Law Professors Will Love This Case
Thursday, April 7th, 2011Once in a while a real head-scratcher of a tax case comes along, and they always seem to involve in one way or another the definition of a capital asset. One that happened to be decided when I was in law school (and was used as the basis for an exam question in a course on tax law) involved someone with a rare blood type who received payments — tens of thousands of dollars, because we’re talking really rare — for permitting her blood plasma to be drawn repeatedly. Was she providing a service? Or selling a capital asset? If the latter, did she have any basis in the asset? (more…)
