The U.S. Senate passed HR 4, a bill to repeal the expanded 1099 tax reporting mandate passed as part of last year’s health care law.The 1099 requirement was passed in 2010 as part of the health care reform law known as the Patient Protection and Affordable Care Act. This provision would have forced all businesses to issue a Form 1099 to vendors from whom they buy $600 worth of goods or more on an annual basis, and was scheduled to take effect in 2012. This requirement was expected to result in massive amounts of paperwork and increased compliance costs. According to the Truck Renting & Leasing Association, for truck renting and leasing companies, this could have meant filling out a Form 1099 for things such as for fueling stations, parts vendors, office equipment and even electricity and phone bills.
In response, earlier this winter, Rep. Dan Lungren (R-Calif.) introduced HR 4 in the House of Representatives, and it passed by wide margins in March.