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Repeal of Onerous 1099 Provision Falls Six Votes Short

The U.S. Senate fell six votes short on November 29 in a bid to repeal a provision of the healthcare law requiring businesses of all sizes, as well as governments and nonprofits, to file a 1099 form with the Internal Revenue Service reporting any purchases they make of goods or services of $600 or more in a tax year from any individual or business, including corporations.

An amendment by Sen. Mike Johanns (R-Neb.) to repeal the requirement failed on a 61-35 vote. A separate repeal amendment by Sen. Max Baucus (D-Mont.) failed 44-53. A two-thirds vote of 67 was needed to amend the food safety bill.

"PIA is disappointed that the Senate failed to approve an amendment repealing the expanded 1099 reporting requirement, which places an onerous burden on small businesses including independent insurance agencies," said PIA National Executive Vice President & CEO Leonard C. Brevik. "However, we are optimistic that repeal will be successful—perhaps during the lame-duck session— in part because of the overwhelming support in the Senate." Unnamed Democratic staffers are quoted as saying there may be another repeal attempt in the lame-duck session of Congress.

"A total of 61 senators voted for the amendment offered by Sen. Johanns, but it fell short of the 67 needed to attach it to the food safety bill," Brevik said. "This vote demonstrates that when it comes to repealing the 1099 requirement, it's not a matter of if but when, and when is soon."



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