Senate votes to repeal unpopular 1099 reporting requirement.
Today, Tuesday, April 5, 2001, the Senate voted 87 – 12 to repeal an unpopular 1099 reporting requirement that was part of the newly enacted Obama health care reform bill.
The main design of this original provision or the "Patient Protection and Affordable Care Act (PPACA)" was to generate an additional estimated $19 Billion Dollars annual tax revenue from additional untapped sources, to help pay for the health care provisions
The repealed requirement that was slated to go into effect in 2012, would have required all businesses to report to the IRS each time that they made either payments, and/or purchases totaling more than $600.00 in a calendar year. This would have been required regardless of what the money was used to purchase.
If left in place, many small business owners indicated that this requirement would have meant a mountain of paperwork that would unfairly burden them.
Currently 1099s need only be issued to individuals and Contractors. However, the new requirement would have included purchases of items such as shipping charges, hotel bills, and equipment, all of which are currently exempt from 1099 reporting. It was also noted that under this new rule, both Churches and non-profits would no longer be exempt from these same 1099 requirements.
Final passage of the measure now requires the President signature.