[print version]
Proposals to Repeal 1099 Provision Fail in Senate
November 30, 2010
FEI Summary
Efforts to repeal the 1099 reporting requirement under the Patient Protection and Affordable Care Act failed Nov. 29. Currently, the 1099 provision requires businesses to fill out a Form 1099 and submit to the Internal Revenue Service for every transaction with a vendor that totals $600 or more. Businesses and lawmakers have been frustrated with the law as it stands, but the Senate could not gain the 67 votes necessary to repeal it.
Two separate proposals were presented:
1. Sen. Mike Johanns (R-Neb.)
· Johanns’ bill failed by a 61-35 vote.
· Major concern with his proposal was his attempt to fund the bill by giving authority to the Office of Management and Budget (OMB) to find a way to cut spending.
2. Sen. Max Baucus (D-Mont.), chair of the Senate Finance Committee
· Baucus’ bill failed by a 53-44 vote.
· Main complaint of Baucus’ bill was a total lack of funding, thus adding to the deficit.
Both lawmakers have pledged to continue to work on repealing the 1099 reporting requirements. “I am disappointed that we weren’t able to repeal these requirements today, but I intend to keep working until we do,” said Baucus.
Please click here for a complete background of the 1099 reporting requirement by the Congressional Research Service.
Prepared Nov. 30, 2010 by Katy Williams (kwilliams@financialexecutives.org) legislative aide, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.
[print version]