WASHINGTON – Congress has approved the repeal of a provision in the Affordable Care Act that would have required small businesses, including physicians, to file an IRS 1099 form starting in 2012 for each vendor purchase of $600 or more.
The April 5 vote was supported by more than three-quarters of Congress and backed by President Barack Obama.
The Senate version of the bill, introduced by Sen. Debbie Stabenow (D-Mich.), passed on February 2; Rep. Dan Lungren's (R-Calif.) House version was passed a month later.
Final passage of the bill did not come easily. Congress struggled with how to pay for the provision, which was estimated to raise $219 billion in tax revenues over 10 years to support ACA. The timing of the vote was inopportune, as Congress battled over the fiscal year 2011 budget.
There has been no shortage of support outside of Congress for doing away with the reporting requirement. The American Medical Association joined the U.S. Chamber of Commerce, National Association of Manufacturers, American Farm Bureau, National Association of Realtors and other organizations in support of the repeal.
J. James Rohack, MD, the AMA's immediate past president, applauded its passage. "Existing administrative burdens already weigh heavily on physicians, taking up time that is better spent caring for patients," he said.
Leaders of the Business Roundtable said the repeal "will boost American competiveness and set the stage for businesses, both large and small, to innovate and create jobs."
National Association of Chain Drug Stores President and CEO Steven Anderson said the requirement would have hindered businesses, including pharmacies. "Everyone is better served when pharmacies can focus on patients, not paperwork," he said.
Rep. Nan Hayworth, M.D. (R-N.Y.) said repeal was the "right thing for the American people."
"Repealing the 1099 tax reporting provision included in the Affordable Care Act is an important step toward curing the ill effects of a law that was poorly conceived and hastily passed," she said.