A majority of U.S. House members agreed last week that new Form 1099 reporting requirements, as written in the Patient Protection and Affordable Care Act, were onerous for small businesses and tax-exempt organizations. As MSAE reported earlier, the Form 1099 requirements force all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually, including regular vendors such as utilities, office supply providers and office equipment sources .

The House members held a heated debate on the Small Business Tax Relief Act (H.R. 5982), but could not agree on how best change them. While the House voted 241-154 in favor of the bill the vote fell short of the two-thirds majority needed to pass under suspension of the rules.

U.S. House Ways and Means Committee Chairman Sander Levin (D-MI) inserted foreign tax credit changes to pay for the legislative fix. Rep. Dave Camp (R-MI) said House Republicans had offered an alternative proposal but the vote was cancelled and the bill pulled.

MSAE will monitor the status on the solutions but is encouraged to learn that there is agreement that the requirements need to change.