On April 5, 2011, the U.S. Senate approved legislation that would repeal the expanded IRS Form 1099 information-reporting requirements imposed by Section 9006 of the Patient Protection and Affordable Care Act (“PPACA”). Having also been approved by the U.S. House of Representatives on March 3, 2011, the bill is now expected to be signed into law by President Barack Obama.
Currently, PPACA requires that certain payments to corporations of $600 or more be disclosed on IRS Form 1099 starting in 2012. If this bill becomes law, in addition to the repeal of this requirement, the Internal Revenue Code would be amended to increase 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 increase would be effective for taxable years ending after December 31, 2013.
As we previously reported here, the U.S. Senate approved a version of the bill on February 17, 2011. However, the U.S. House of Representatives would not agree to the budget offset and approved its own version on March 3, 2011, which was subsequently approved by the U.S. Senate on April 5, 2011 as reported here.