Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Health Insurance

Obama Signs 1099 Fix Bill

Your article was successfully shared with the contacts you provided.

WASHINGTON BUREAU — President Obama has signed H.R. 4 – a bill that will repeal the Form 1099 reporting provision created by Patient Protection and Affordable Care Act (PPACA) Section 9006 – into law.

If PPACA 9006 Section 9006 had taken effect as written, it would have required a business entity to file a 1099 miscellaneous income reporting form with the Internal Revenue Service for a vendor Obamawhenever it had $600 or more in transactions with that vendor in a given tax year.

The provision would have taken effect in January 2012.

Small business groups had argued that the provision would create a paperwork nightmare, forcing independent contractors to file a Form 1099 whenever they bought a computer or a suite of office furniture from a large retailer.

The new law created by H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011,” also repeals a separate Form 1099 information reporting requirement that would have been imposed on owners of rental real estate.

Analysts have estimated repeal of PPACA Section 9006 will cost $19 billion over 10 years. Drafters of the repeal law have paid for repeal by adjusting a PPACA health insurance subsidy program that is set to start up in 2014.

House members voted 314-112 for H.R. 4 March 3.

The bill passed in the Senate by a vote of 87-12 April 5.

While signing H.R. 4, President Obama said he is “eager to work with anyone with ideas about

how we can make health care better or more affordable.”

The National Association of Insurance and Financial Advisors, Falls Church (NAIFA), Va., has issued a statement commending Obama for signing H.R. 4 and noting that NAIFA continues to support repeal of several other PPACAprovisions, such as a section providing $2.2 billion for a new system of nonprofit, policyholder-own health insurers and a section that could create a voucher system that would help workers opt out of group health plans and buy individual coverage.

NAIFA also is asking Congress to pass H.R. 1206, a bill that would exclude agent commissions from the new PPACA minimum medical loss ratio (MLR) system.

“The MLR provision is another part of health reform that needs to be revisited in order to preserve consumer service,” NAIFA President Terry Headley says in a statement. “Many agents have seen commissions slashed by 50% or more, and they have had to curtail the customer services their individual and small-group clients have come to expect.”

Other 1099 fix coverage from National Underwriter Life & Health:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.