On February 2nd, the Senate voted on multiple topics related to the 1099 reporting requirements as part of the FAA reauthorization bill. The first was a repeal of the 2010 Patient Protection Affordable Care Act (aka, the health care law). The health care repeal failed in a 51 to 47 vote. The second was a repeal of the 1099 reporting requirements that are part of the funding provisions of the health care law. The 1099 repeal passed in an 81 to 17 vote.
So what happens now? Are the new 1099 reporting requirements dead? Well…they’re not dead yet.
On January 25th, I discussed the efforts in the House to repeal the 1099 reporting. The House will need to vote on a bill to repeal the 1099 reporting requirements. If passed, the bill will go back to the Senate. The Senate may or may not tweak the bill and then will vote on the repeal. Then it’s up to President Obama.
What still remains uncertain is how the estimated $17 billion to $19 billion in revenue from the 1099 reporting provision will be offset.
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