Newsroom

April 05, 2011

Senate clears repeal of new 1099 reporting

April 6, 2011 – The Senate, voting 87-12, yesterday gave final passage to H.R. 4, a bill that implements aNAFCU-backed repeal of a health-care reform law provision set to increase 1099 reporting for credit unions and other businesses beginning Jan. 1.

The provision was intended to help contribute $22 billion toward the costs of the reform package. It would require all small businesses, including credit unions, to file a Form 1099 on all purchases of more than $600 worth of goods and services. The Senate-passed bill also ends some 1099 reporting on rental properties not used in a business.

H.R. 4 was introduced by Rep. Dan Lungren, R-Calif., to provide for the 1099 repeal; additional measures were added later that, among other things, end some 1099 reporting on rental property not related to a business.

Prior to the vote on H.R. 4, the Senate closely rejected an amendment from Sen. Robert Menendez, D-N.Y., to reverse a requirement that some lower-income people repay health insurance exchange subsidies following an increase in income. The provision failed on a vote of 41-58.

The measure is headed to the president for signature.