The House Ways and Means Committee has advanced a bill to repeal a tax reporting provision included in last year’s healthcare reform law.
The Senate has already voted to repeal the 1099 form tax provision that would require businesses to report on purchases of goods and services that total more than $600.
President Obama has said he supports the repeal.
Current law requires a filing for those expenses paid to an unincorporated entity, but the new requirement would require filings for expenses such as phone or Internet service and office supplies starting next year.
“This requirement provides no benefit to the businesses that have to file the paperwork or the taxpayers,” said Jimi Grande, senior vice president of federal and political affairs at National Association of Mutual Insurance Companies (NAMIC). “Instead, it will be a massive drain on time and resources that would be better spent elsewhere.”
Introduced by Rep. Dan Lungren, R-Calif., the bill has 272 co-sponsors. With the committee’s approval, the measure will now move to the House floor.
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