WASHINGTON BUREAU — The House Ways and Means Committee has approved a Form 1099 reporting fix bill that is different from a fix passed by the Senate several weeks ago.
The Ways and Means bill, H.R. 705 would cancel the new, expanded 1099 reporting requirements by revising Section 6041 of the Internal Revenue Code. The bill includes a second provision that would cancel expanded rental property expense reporting requirements, and a third provision designed to make up for the $22 billion in revenue that could be lost as a result of the reporting changes.
Panel members approved the bill by a 21-15 vote.
By a voice vote, panel members also approved a separate bill, H.R. 4, that would simply repeal the Form 1099 provision in the Patient Protection and Affordable Care Act (PPACA), Section 9006.
If PPACA Section 9006 is implemented as written, it will require a business to send a Form 1099 to the Internal Revenue Service when the business does more than $600 in business with a vendor in a tax year.