Last Friday, the House Ways and Means Committee advanced a bill to repeal the tax reporting provision that was included in last year’s healthcare reform legislation. The Senate had already voted to repeal the 1099 provision requiring businesses to report on purchases of goods and services totaling more than $600.
President Obama said he supports the repeal.
Under current law, 1099’s must be filed for expenses paid to unincorporated entity, but the new requirement would require that expenses like phone and Internet services be filed starting next year.
According to Jimi Grande, senior vice president of federal and political affairs at NAMIC (the National Association of Mutual Insurance Companies), “This requirement provides no benefit to the businesses that have to file the paperwork or the taxpayers. Instead, it will be a massive drain on time and resources that would be better spent elsewhere.”
The bill was introduced by Rep. Dan Lungren (R – CA), and has 272 co-sponsors. It has since been sent to the House floor for debate and a vote.