House repeals 1099 provision

This article was originally printed in Numismatic News.
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The U.S. House of Representatives voted March 3 to repeal the widely unpopular 1099 tax reporting provision of the health care law.

Though the measure passed 314-112, it is unlikely to find much support in the Senate, acccording to Nicholas Pyle, coordinator of Numismatists United for Political Action.

The House and the Senate have already voted several times to repeal the bill, but neither chamber has been able to find a mutually acceptable way to cover the lost revenue, said Pyle, whose group has been working to repeal the measure.

In February the Senate voted 81-17 to repeal the 1099 provision and pay for the cost by directing the Office of Management and Budget to rescind unobligated federal funds. House Republicans would not accept the Senate offset.

Although businesses don’t have to fill out the actual 1099 tax forms until 2013, they will have to get ready to track all purchases over $600 in 2012 to comply with the reporting requirement.

House Majority Leader Eric Cantor, R-Va., said that the next step will have to be negotiation. “We’ll have to see where the differences lie between the two bills,” Cantor said. “Hopefully we can get this to the President’s desk as quickly as possible.”