As anticipated in our earlier blog post, the U.S. House of Representatives has voted on a bill that would repeal the IRS Form 1099 information-reporting requirements imposed by Section 9006 of the Patient Protection and Affordable Care Act. On March 3, 2011 the House approved H.R. 4 – Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011. This bill would amend the Internal Revenue Code to, among other things, (1) repeal requirements for reporting to the Internal Revenue Service payments of $600 or more to corporations that are not tax-exempt and of gross proceeds paid in consideration for any type of property and (2) increase, for taxable years ending after December 31, 2013, the advance applicable dollar amount of the tax credit for health care premium assistance for taxpayers whose household income is less than 400% of the poverty line.
The U.S. Senate approved its own version of the bill on February 17, 2011 as previously reported; however, the House would not agree to the budget offset. Both chambers have voted several times to repeal the legislation, each time failing to reach agreement on how to cover the cost of the lost revenue. Party leaders have indicated the next step will be negotiation between House and Senate.