Efforts to eliminate proposed 1099 tax-reporting requirements for small businesses moved a step closer to success today as the U.S. House of Representatives voted 314-112 to repeal the 1099 mandate that is part of the healthcare reform law.
The much-criticized 1099 provision, set to take effect in 2012, would require business owners -- including dentists -- to file 1099 forms with the Internal Revenue Service to report all transactions that cost more than $600.
Last month the U.S. Senate also approved an amendment that would repeal the 1099 mandate.
But there remain deep divisions in Congress over how to pay for the repeal, which would result in an estimated $22 billion loss in revenue over the next decade, according to news reports.
In an effort to offset the loss, the Senate version of the repeal proposes giving the Office of Management and Budget the ability to take away nearly $44 billion of discretionary budget authority, except from the Departments of Defense, Veterans Affairs, and Social Security.
The House version would pay for the repeal by making consumers repay all of their insurance subsidies under the healthcare law once their income rises beyond 400% of the federal poverty line.
President Obama called for Congress to repeal this section of the bill during his most recent State of the Union message.
