Aug 31, 2011
The U.S. Senate has moved a step closer to repealing the expanded 1099 information reporting requirements originally contained in the health care reform law. The provision was included in a bill passed by the Senate that modernizes the Federal Aviation Administration’s (FAA) technology.
While the Senate had approved a 1099 repeal amendment for the FAA reauthorization bill in early February, two additional weeks of Senate debate on the FAA issues held up passage.
The bill passed after the U.S. House Committee on Small Business conducted several hearings last week on a potential repeal of the overly burdensome 1099 requirement.
The 1099 provision would repeal the requirements in last year’s health care reform bill forcing businesses to report any purchases of goods or services totaling over $600 a year from any other business.
Separately, the House Ways and Means Committee approved a bill that would repeal the same requirements, along with further 1099 information reporting requirements for rental property businesses that were originally included in last year’s Small Business Jobs Act. Rep. Pat Tiberi (R-OH) was the impetus behind the 1099 rental property repeal. The full House is expected to take up the bill this week.