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1099 Repeal Moves Forward

Both the House and the Senate have approved separate provisions to repeal the health care law’s burdensome 1099 reporting mandate. Beginning in 2012, every transaction with an outside vendor totaling more than $600 will have to be detailed on an IRS Form 1099.

On Feb. 17, the Senate approved, as part of the FAA Air Transportation & Safety Improvement Act (S. 223), a provision to scrap the onerous requirement. Subsequently, the House passed a separate measure (H.R. 4) to repeal the 1099 mandate. Despite bipartisan endorsement by both chambers, efforts to rescind the obligation are not over as the House and Senate have yet to agree on a unified approach to offset the expected revenue from the 1099 requirement.

ARSA joined more than 100 other organizations on a letter to House Ways & Means Committee Chairman Dave Camp (R-MI) and Ranking Member Sander Levin (D-MI) urging immediate action to repeal the mandate.

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