US Senate Passes Measure To Repeal Tax-Reporting Requirement
Wednesday, February 02, 2011
US Senate Passes Measure To Repeal Tax-Reporting Requirement
By: Siobhan Hughes, Dow Jones Newswire
The U.S. Senate on Wednesday voted to roll back a controversial
tax-reporting requirement that was part of the health-care
overhaul, putting it a step closer to becoming law.
The vote was 81-17 to add the repeal of the tax-reporting
requirement to a must-pass bill funding the Federal Aviation
Administration.
The rules, which were to take effect in 2012, require businesses
to file 1099 forms with the Internal Revenue Service showing
payments of less than $600 to suppliers and service providers.
The requirement is perceived by small businesses as a
bureaucratic nightmare, requiring piles of paperwork. But because
the mandate was expected to prompt service providers to pay taxes
they might have otherwise ignored, repealing it has been
challenging.
Democrats earlier tried to make up for the lost revenue by
taking away tax breaks for oil and gas companies, but that measure
failed on Wednesday by 44-54. Instead, the Senate by 81-17 voted to
repeal the paperwork requirements and make up for the lost revenue
by cutting funds that had been set aside for future spending.