The Senate today passed H.R. 4, a bill that fully repeals the 1099 reporting requirement enacted as part of last year's health care reform bill. Had the repeal not been enacted, the requirement would've required all businesses to file an Internal Revenue Service (IRS) Form 1099 for every vendor from which they annually buy $600 worth of goods or services, beginning next year.
The bill's passage caps weeks of debate over how exactly Congress would pay for the repeal. In voting for H.R. 4, the Senate agreed to fund the measure as the House of Representatives originally sought to, that is, by requiring taxpayers who receive federal health insurance subsidies to repay them if they end up earning more than 400% over the poverty line.
Stay tuned to this week's NACM eNews for more details.