Senate Votes to Repeal IRS 1099 Reporting Requirement

Strategic Insights -

U.S. Senator Thad Cochran (R-Miss.) and a majority of his colleagues in the Senate voted to repeal a contentious provision of the health care reform law, which would have required businesses, local governments, and charities to file Internal Revenue Service (IRS) 1099 forms for transactions totaling more than $600 a year. The repeal legislation, which passed with a vote of 87-12, marks a significant step in the ongoing efforts to address the alleged flaws in the Patient Protection and Affordable Care Act.

Key Takeaways:

  • The Senate voted to fully repeal the IRS 1099 reporting requirement, which was signed into law in March 2010 as part of the Patient Protection and Affordable Care Act, by a margin of 87-12.
  • The repeal legislation will now be sent to President Obama for his signature.
  • Senator Thad Cochran (R-Miss.) cosponsored similar Senate legislation and amendments to repeal the 1099 provision in previous sessions.
  • The state of Mississippi, where Senator Cochran serves, is party to one of the major lawsuits challenging the constitutionality of the health care reform law.
  • Cochran has cosponsored multiple measures to repeal or modify the health care law, including the Repeal the Job-Killing Health Care Law Act (S.192) and the Small Business Innovation and Research/Small Business Technology Transfer Program Reauthorization Bill (S.493).
  • The 1099 reporting requirement would have imposed a significant administrative burden on small businesses and local governments, compelling them to issue tax forms for transactions exceeding $600 in a tax year.

Statistics:

  • 87-12: The Senate vote margin in favor of repealing the IRS 1099 reporting requirement.
  • 2010: The year the Patient Protection and Affordable Care Act was signed into law, with the 1099 reporting mandate included.
  • 12: The number of Senate votes against repealing the 1099 reporting requirement.
  • $600: The threshold for transactions that would have required businesses to file IRS 1099 forms.
  • 1099 forms: The type of tax form that businesses would have been required to issue for transactions totaling more than $600.

Sources:

  • Mississippi Senator Thad Cochran's Press Release, "Cochran Votes to Repeal Unnecessary IRS 1099 Mandate"
  • Congress.gov, "S. 4996: A bill to repeal the health care related provisions of the Tax Code (S.4996)"
  • Congress.gov, "Repeal the Job-Killing Health Care Law Act" (S.192)