Congress Clears Bill to Repeal ACA "1099" Tax Reporting Provision
On April 5, 2011, the Senate approved H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.” The legislation, which was approved by the House in March, 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 bill is paid for by expanded recoupment of health insurance exchange subsidy overpayments. The bill now awaits the President’s signature; the President has expressed support for the bill since it corrects “a flaw that placed an unnecessary bookkeeping burden on small businesses.”
