As Congress heads into lame-duck, repeal of 1099 reporting provision likely

Las Vegas Sun: Heading into a lame-duck session, "Congress has several other items left on its docket. … there's a rewrite of the 1099 tax reporting requirements under the health care bill, which presently require businesses to report every expense over $600. Sen. Max Baucus [D-Mont.] announced last week that he would [introduce] a bill tackling that provision, which has been a lightning rod for criticism of the health care bill" (Demirgian, 11/15).

MSNBC: Baucus said the legislation would "repeal requirements for businesses to file forms that would report payments made for goods and certain services to the IRS." Baucus, who "helped shepherd through the original health-care bill, "explained the proposal was originally written to keep taxes low by giving the IRS more tools to ensure all owed taxes were paid. However, following passage of the law, some business owners expressed concern that when the provision does go into effect, the forms would place too large of a paperwork burden on businesses struggling in a still-recovering economy" (O'Donnell, 11/12).

Pacific Coast Business Times: "The intention [of the 1099 reporting provision] was to help close the $350 billion gap the IRS estimates exists between taxes owed and taxes paid and to help pay for health care. ... The IRS estimates that 40 million businesses would be affected by the new requirement. ... President Barack Obama has called the regulation 'too burdensome' and 'probably counterproductive'" (Nellis, 11/15).

The Associated Press: In an interview, Senator Max Baucus "maintains - even the better part of a year later - that voters hostile in large numbers toward the [new health law] will warm to it as the lengthy list of provisions take effect. The bulk of the bill will last, he predicts." Republicans who seized control of the House "in part by promising a repeal of health care overhaul won't be able to deliver on that promise because of the huge majority needed in the Senate to break parliamentary stalemates, Baucus said. 'That does not mean it shouldn't be changed, because it should be changed,' Baucus said. 'We are going to listen to the American people'" (Gouras, 11/13).