The Senate voted to repeal the 1099 tax reporting requirement in the healthcare reform law and President Obama is expected to sign the repeal, according to a report by Politico and a report from the Ambulatory Surgery Center Association in its ASCA Government Affairs Update.
The unpopular provision would have raised funding for healthcare reform by forcing businesses, including ASCs, to file 1099 tax reporting forms for payments of $600 or more, making it easier for the IRS to identify taxes on those payments. Small business in particular complained the reporting would have been onerous.
The bill, which the House already approved, would offset an estimated $21.9 billion in lost income from the provision by requiring consumers to return more of their tax subsidies to purchase health insurance if their income changes during the year and they are eligible for less assistance, according to the Politico report.
According to the ASCA Government Affairs Update report, the ASCA worked with its members and allied organizations to influence Congress through direct grassroots advocacy. Members responded to an action alert and hundreds called and sent messages to their members of Congress requesting a repeal of the onerous provision.
"The small business community, including ASCs, joined forces to tell Congress that this provision presents an unnecessary administrative headache for small businesses," said ASCA Executive Director William Prentice in the report.
The 1099 provision would have added increased financial burdens to small ASCs, which often lack the staff resources to report these transactions.
For more information, ASCs can contact Brendan Davis at the ASCA at bdavis@ascassociation.org.
Read the Politico report on the 1099 provision.
Learn more about the ASC Association.
Read more coverage on repealing the 1099 provision:
- House Dumps 1099 Tax-Reporting; Differs From Senate Bill
- Senate Quashes Repeal, Then Votes to End Tax-Reporting Requirement
- New Bill Would Repeal Tax-Reporting Mandate in Reform Law