The health care law is safe despite the House of Representative's repeal of the measure on Wednesday.
But a reporting regulation created as part of the Patient Protection and Affordable Care Act is now closer to being eliminated.
I'm talking, of course, about the new Form 1099 rule, which mandates that next year every business file a separate information form for each vendor with whom it does $600 or more of business.
It was included in health care to help the IRS track income it believes goes unreported. Plus, the provision is projected to raise $17 billion to help pay for health care reform.
The measure has caused business owners a lot of distress well before its actual implementation.
Next week, however, the House Ways and Means Committee, now under Republican control, will hold its first hearing on health care and repeal of the 1099 rule is expected to be on the agenda.
This is one prescription for tweaking health care that has wide bipartisan support.
Three Democratic Senators -- Ben Nelson of Nebraska, Maria Cantwell of Washington and Amy Klobuchar of Minnesota -- already are pushing repeal. Thursday, the trio sent a letter to House Speaker John Boehner (R-Ohio) urging him to "work on efforts to improve" the health care law.
Specifically, the Senators want the House to take up and pass H.R. 4, a bill that would strike the 1099 tax reporting mandate from the health reform law. And they cited a new (at least to me) argument against the expanded reporting requirement:
The provision may also have the unintended consequence of distorting behavior in the marketplace, as large businesses will have an incentive to minimize their reporting requirements by consolidating purchases with large vendors, harming small, regional vendors.
The White House is not expected to oppose repeal efforts.
So soon, businesses should be feeling a lot better.
- Form 1099 repeal fails yet again
- Repeal of new Form 1099 reporting rule back
in Congressional sights
- Senate uses Form 1099 as political bludgeon,
fails to fix reporting problem
- Senator slams SBA for not taking a stand
on new Form 1099 reporting rule
- Lawmakers seek repeal of new 1099 forms
- Effort to repeal 1099 reporting fails
- Tell the IRS what you think about the new
Form 1099 reporting requirement
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