Obama Makes It Official: 1099 Repeal Signed Into Law
Because the 1099 reporting requirement was a non-health related revenue-raising provision within the health law, its repeal is paid for with a payback provision that recoups funds from people who exceed their estimated income level during the course of the year after receiving subsidies for health insurance.
The Hill: Obama Lifts 1099 Tax Reporting Burden
President Obama on Thursday signed into law a bill repealing the health care reform law's 1099 tax reporting requirement, the first provision of the Democrats' law to get the ax. The Senate passed the law, 87-12, on April 5. The Republican controlled House cleared it in March. Obama signed the bill, which was defeated several times, despite taking issue with the ways it's paid for: a "clawback" provision that goes after people who get more in health care subsidies than entitled to under the health care reform law. "Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law," reads the president's signing statement (Pecquet, 4/14).
Bloomberg: Obama Signs Law Repealing Business Tax Reporting Mandate
President Barack Obama signed a bill repealing a tax-compliance mandate in last year's health care law, giving a victory to business groups that led a campaign against the requirement. The repealed provision, under which companies would have had to report more transactions to the Internal Revenue Service, was included in the law as a revenue-raising measure. It was to have taken effect in 2012 (Rubin, 4/14).
CQ HealthBeat: President Signs 1099 Repeal Into Law
President Obama on Thursday signed into law the first significant revocation of a portion of the health care law - a business tax-reporting requirement that members of both political parties disliked. Obama signed HR 4, which repeals a provision that required business and real estate owners to file a 1099 form with the IRS for every vendor to whom they paid more than $600 in a year. Business groups had lobbied hard against the provision. ... The $22 billion cost of the 1099 legislation was offset by requiring some people, if their income level increases during the year, to pay back a portion of the subsidies they receive to join health insurance exchanges created under the law (Norman, 4/14).