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Last Updated: Mar 4th, 2011 - 12:05:16 |
The tax filing requirement for small businesses that had been tucked into the new health care law was repealed yesterday by Congress.
The requirements would have forced millions of businesses to file tax forms for every vendor that sells them more than $600 in goods each year. It would have been a way to ensure vendors pay their taxes and was projected to raise nearly $25 billion in ten years.
However, the House of Representatives voted overwhelmingly against the requirement saying it creates a paperwork nightmare.
�Frankly, it is an attempt to repeal a provision of the health care bill that never should have been there in the first place,� Representative Dan Lungren, a California Republican who sponsored the House repeal bill told the Associated Press. �Let�s not make it a political football now.��
The Obama administration budget office released a statement saying it supports repealing the filing requirement because it would "place an unnecessary bookkeeping burden on small businesses."
About 38 million businesses, charities and tax-exempt organizations would have been hit by the requirement. Too many of them are already swamped by government paperwork, according to a recent report by the National Taxpayer Advocate, an independent watchdog within the IRS.
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