This week, the United States Senate passed HR 4, legislation that would repeal the expanded 1099 reporting requirements mandated in last year’s health care legislation and also the new 1099 reporting requirements on landlords of small rental properties. In voting to approve the bill, the Senate agreed to adopt the House measure that passed earlier this year. The White House has generally supported efforts to repeal the 1099 provisions and has signaled that the President will sign the legislation.
Under the Patient Protection and Affordable Care Act, businesses are required to file 1099 tax returns beginning in 2012 for all business-to-business non-credit card transactions that total $600 or more in a year. In addition to the health care bill provision, a separate provision within the Small Business Jobs Act passed last year requiring that individuals who receive rental income – small landlords – be subject to 1099 reporting requirements. Both of these provisions would be repealed by the bill.
The legislation would pay for the approximately $20 billion cost by requiring people earning 400 percent of the federal poverty limit to repay health insurance exchange subsidies if their income increases over the course of a year.
The Greater Philadelphia Chamber of Commerce has long supported legislation to repeal the onerous paperwork burdens imposed on businesses by the expanded information reporting mandate contained in Section 9006 of the PPACA, and more recently, the Small Business Jobs Act. We thank our congressional delegation and all Members of Congress whose efforts helped make this small business relief possible. We urge the President to sign this important piece of legislation.