Word out of Washington is that the House intends to pass legislation that would repeal the controversial provision in the Affordable Healthcare Act that requires all businesses to file a Form 1099 to declare payments made in excess of $600.
Two separate bills (one proposed by Democrats, the other by Republicans) were shot down in the Senate before a provision was added to a new aviation bill that was passed on February 2 by an 81-17 margin.
Both parties are in rare agreement on the need to repeal the requirement, but the holdup in the House has been the question of how to offset the $17 billion increase in tax revenues over the next 10 years that the Congressional Budget Office estimates will result from the change. (The Senate version offsets the loss with unspecified future funding cuts.) It is believed there is enough bipartisan support that the House will pass the Senate version sometime in March without any offsetting budget cuts.
In contrast to the optimism surrounding the repeal of this requirement, there has been little sign of imminent action to repeal the provision in the Small Business Jobs Act (Sec. 2101) that requires all taxpayers owning rental property to issue 1099s for payments of $600 or more beginning in 2011.
Given the cost implications for small businesses and especially independent contractors such as plumbers and electricians, it is still possible Congress will be persuaded to rescind the requirement. But owners of rental properties would be wise to begin collecting contact information and tax identification numbers from service providers for the current tax year in case Congress decides only to repeal the more general requirement associated with the Healthcare Bill.
The Ohio Society of CPAs is looking for input from Ohioans affected by the rental property requirement to pass on to Rep. Pat Tiberi (12th District). Follow the link and see the e-mail address at the end of the article if you would like to share.