News

1099 Reporting Requirement Repealed; H.R. 4 Signed into Law

April 19, 2011

On April 14 President Barack Obama signed a law that removes the expanded “1099” reporting requirement from the Patient Protection and Affordable Care Act (PPACA).  H.R. 4, known as the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, repeals a requirement that small business owners, farms and ranches file a 1099 for all payments, including goods and services, totaling $600 or more.  Prior to the enactment of the law, the government had planned to tax revenues reported on 1099 forms in order to raise money to fund health care reform. The Form 1099 provision was set to begin in 2012.  The PPACA is a federal statute that was signed into U.S. law on March 23, 2010. This Act and the Health Care and Education Reconciliation Act of 2010, signed into law on March 30, 2010, made up the health care reform of 2010.