House Approves Repeal of ACA "1099" Tax Reporting Provision
On March 3, 2011, the House of Representatives approved H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011. H.R. 4 would repeal an ACA provision that requires businesses to file an IRS form 1099 for each vendor from whom they make purchases of at least $600 and revise other ACA IRS reporting requirements. The House version of the bill is paid for by expanded recoupment of health insurance exchange subsidy overpayments. The Senate approved a different version of the 1099 reporting requirement last month; the two approaches – particularly the financing mechanisms -- now need to be reconciled.
