Senate Passes Repeal of Extended 1099 Tax Reporting
On Tuesday, the Senate passed HR 4 to fully repeal the expanded 1099 reporting contained in last year's health care law. While the President would need to sign the bill before it becomes law, the White House has indicated its pleasure that the bill has passed and that it supports its principles. Many lawmakers have expressed concern that this provision, which requires businesses to file 1099 forms with the Internal Revenue Service for payments of $600 or more to vendors, would create an unnecessary burden on small businesses. Repeal of the expanded 1099 reporting had been delayed as both Houses of Congress and both political parties worked to find a compromise for offsetting the costs created by a repeal. HR 4 is paid for by a change in how tax subsidies are recollected for consumers with shifting incomes who use state-based health insurance exchanges under the overhaul. While this bill had bi-partisan support, many Republicans are claiming this is their first step in repealing the Affordable Care Act in its entirety.