The U.S. Senate has passed H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011, by a vote of 87-12, without amendments. The House had previously passed the bill.
The bill would repeal new corporate information reporting requirements that were scheduled to go into effect in 2012. The new information reporting requirements were included in Sec. 9006 of the Patient Protection and Affordable Care Act (PPACA, P.L. 111-148). Under current law, payments to corporations, except those made for medical or health care services, are not required to be reported on an information return. Since passage of the PPACA, businesses have raised concerns about the expense and effort required to comply with the expanded information reporting requirements.
The bill now goes to the White House. The President is expected to sign the bill. White House Press Secretary Jay Carney issued a statement on April 5 which said that the Obama Administration is pleased that “Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses” and that “eliminating the 1099 reporting requirement is the right thing to do.”