Congress has voted to repeal a burdensome tax-reporting provision of the Patient Protection and Affordable Care Act (PPACA).
Before passage of PPACA, businesses needed to file a 1099 with the IRS for services provided by unincorporated vendors. Beginning in 2012, PPACA would have required businesses to file a 1099 for any single or cumulative purchase of $600 or more worth of goods, in addition to services provided from any vendor.
Businesses objected to this proposed reporting provision, arguing that even the smallest businesses make many purchases that would have been captured by this rule. Those opposed to the requirement argued that tracking such purchases and issuing the required forms would have been unjustifiably expensive.
President Obama has indicated he will sign the bill repealing the expanded 1099 reporting requirement.