WASHINGTON (Feb. 18, 2011) — The House Ways and Means Committee has reported two bills to the full House that would repeal the 1099 reporting requirements created by the healthcare law passed last year.
By voice vote, the committee approved H.R. 4, which repeals Section 9006 of the Patient Protection and Affordable Care Act. That section requires all businesses with more than 25 employees to submit 1099 forms to the Internal Revenue Service for every vendor they pay $600 or more to in a calendar year. The requirement, which will go into effect in 2012 unless repealed, has been denounced as an onerous burden by virtually every small business association, including the Tire Industry Association (TIA).
By a 21-15 vote, the committee also passed H.R. 705, which includes repeal of the 1099 rules as part of a larger package that also repeals expansion of those requirements to landlords as enacted under another law. All committee Democrats voted against this particular bill because they objected to its $24.7 billion offset—to be paid by modifications to the limitations on amounts required for repayment of advance premium assistance tax credits for health insurance.
The House is expected to take up the 1099 repeal bills sometime in March. A Senate bill identical to H.R. 705 has been referred to the Senate Finance Committee.