The House on Thursday passed by a vote of 314-112, H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, legislation to repeal the new expanded Form 1099 tax reporting requirements under the Patient Protection and Affordable Care Act (PPACA) passed last year.
The Financial Services Institute (FSI), for one, has been lobbying to ensure repeal of the measure as the PPACA provision requires businesses to file Form 1099 tax reports with the Internal Revenue Service (IRS) for any expenses worth $600 or more.
David Bellaire, general counsel and director of government affairs at FSI, says that the 1099 requirements “would have imposed an extremely burdensome information reporting requirement on small businesses, including independent financial advisors whom we serve.” FSI, he said, “Was pleased that the House recognized that the reporting requirement couldn’t be justified by the limited utility that the Form 1099 filings would have provided.”