Congress OKs repeal of ACA 1099 requirement

The U.S. Senate voted Tuesday to repeal an Affordable Care Act provision that requires businesses to file a 1099 every time they spend more than $600 a year with another business (Source: “Congress votes to repeal health care reform provision,” Dayton Business  Journal, April 5, 2011).

The provision was included in the ACA as a means to help fund for the law. Supporters said third-party reporting or income makes businesses less likely to try to hide income from the IRS, thus increasing federal revenue. However, small businesses have contended that the requirement would create a burdensome some amount of paperwork.

The legislation has already passed the House and now goes to President Obama for his signature. The President has said he supports the repeal of the requirement.