We were all holding our breath waiting for this to happen! It’s hard to imagine, but there were some who voted against it. Go figure.
The House passed the repeal, on March 3, 2011, of a section of the Patient Protection and Affordable Care Act (P.L. 111-148) that required businesses to file Form 1099 for all transactions valued at $600 or more, that is, the Small Business Paperwork Mandate Elimination Act of 2011 (H.R. 4). The measure now goes to the Senate for consideration.
The Senate passed its version, as an amendment to the FAA reauthorization bill on February 2, 2011 (S.B. 223) (see CCH Payroll Management Guide Report Letter 1333/2185, dated February 8, 2011).
The Obama Administration raised “serious concerns” about the method of paying for repeal of the Form 1099 reporting requirement for small businesses under the Patient Protection and Affordable Care Act (P.L. 111-148) contained in a House bill. The administration in a written policy statement, said the proposed offset in the Comprehensive 1099 Tax Protection and Repayment Exchange Subsidy Overpayments Act of 2011 (HR 4) would increase taxes on certain middle-class families that incur unexpected health care tax liabilities even though they followed the rules.
A provision repealing the same information reporting requirements in the FAA Air Transportation Modernization and Safety Improvement Act also drew criticism by the administration. The aviation bill would pay for the repeal with an unspecified rescission of $44 billion which, the administration noted, could seriously disrupt services provided
by the federal government. The administration said it will continue to work with Congress to find an acceptable offset for repealing the bookkeeping requirement. (House Ways and Means Committee Report on the Small Business Paperwork Mandate Elimination Act of 2011 (HR 4).)