Senate Approves Repeal of 1099 Provision

The U.S. Senate passed a bill April 5th that will repeal Healthcare Reform’s 1099 tax reporting requirement. The measure benefits from bipartisan support, passing on an 87-12 vote.

Under the reporting requirement, businesses would have to file a 1099 form for any person or company to whom they paid more than $600 in a tax year. It was slated to raise $21 billion over 10 years by making it easier for the IRS to identify and pursue those who failed to report the required information.

The bill passed by the Senate makes up for that lost tax revenue by requiring consumers who enroll in their state healthcare exchanges slated to debut in 2014 to return money that the federal government overpays them for their coverage.

Under Healthcare Reform, the government will provide subsidies to those who enroll in the exchanges.

The bill, having already passed the House, now goes to President Obama for his signature.