WASHINGTON (April 5, 2011) President Obama should waste no time in signing into law legislation approved by the Senate today to repeal a burdensome tax reporting provision included in last year’s healthcare reform law, said the National Association of Mutual Insurance Companies (NAMIC).
“The president has called the 1099 reporting requirement a ‘flaw’ in the healthcare law, and he now has the opportunity to fix it,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “It does nothing to help our economy, or fix the healthcare system, and the only jobs it creates will be at the Internal Revenue Service. For months we’ve heard from the administration and members on both sides of the aisle that they oppose the 1099 requirement. Congress has done its part to repeal this provision, and we urge the president to sign the repeal legislation as soon as possible.”
Under section 9006 of last year’s Patient Protection and Affordable Care Act, any business expense of more than $600 in a single year would require the filing of a separate 1099 form with the Internal Revenue Service beginning in 2012. Current law requires a filing for those expenses paid to an unincorporated entity, but the new requirement would require filings for mundane expenses such as phone or internet service and office supplies. The Senate voted today to approve HR. 4, a repeal measure already approved by the House.
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