Senate repeals 1099 provision; bill goes to President Obama for signature

The Senate voted on Tuesday, April 5, by a vote of 87 to 12, to repeal the provision in the Patient Protection and Affordable Care Act (aka ObamaCare) that would have required businesses to file 1099 tax forms beginning in 2012 for all purchases over $600. The measure now goes to the president, who is expected to sign it. The measure was sponsored by Senator Mike Johanns (R-NE).
 
The measure also repeals a requirement passed in the small-business lending bill in that required recipients of rental income to distribute and file 1099 forms on annual payments in excess of $600.
 
The 1099 repeal is expected to be paid for by requiring people to return overpayments of health-insurance subsidies when their income becomes greater than the threshold used to calculate the subsidy. That threshold is reached when people make more than 400 percent of the federal poverty limit over the course of a year. This premium assistance provision in the health care act is not effective until 2014.
 
Some Democrats in the Senate opposed the way the repeal is funded. An amendment offered by Sen. Robert Menendez (D-NJ) that would have instructed the secretary of Health and Human Services (HHS) to study the repeal and determine if it would cost small businesses more than it would save them was defeated 41 to 58; it needed 60 votes to pass.
 
"This is a big win for small business and, more importantly, I hope it's the first of many successful repeal votes related to the disastrous healthcare bill passed by Democrats last year," Senate Minority Leader Mitch McConnell (R-KY) said Tuesday before the vote, according to the Hill.com
 
Related item:
 
 

You may like these other stories...

By Cathy Stopyra and Todd SimmensUnderpayment interest, refund interest, and penalties charged to businesses are just a few of the considerations the IRS calculates when determining taxation for a given company. Though...
FASB mulling a revamped income statementDavid M. Katz of CFO wrote on Tuesday that the Financial Accounting Standards Board (FASB) is in the early stages of researching whether to launch a project aimed at improving and...
Renaissance avoided more than $6 billion tax, report saysThe Senate Permanent Subcommittee on Investigations said on Monday that a Renaissance Technologies LLC hedge fund’s investors probably avoided more than $6...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.