Following House and Senate passage earlier this year, the President on April 14 signed into law legislation that repeals an onerous business tax reporting requirement in PPACA. The bill – H.R. 4 – revokes a provision that required businesses and real estate owners to file a 1099 tax form with the Internal Revenue Service for every vendor to whom they paid more than $600 a year.
The legislation is significant in that it marks the first notable portion of PPACA to be overturned, and that it was widely supported by bipartisan majorities in both the House and Senate. The cost of repealing the 1099 provision is $22 billion, which is paid for by requiring certain individuals to pay back a piece of the health insurance exchange subsidies they receive under PPACA, should their income levels increase during the year.