Reporting requirements law moves closer to repeal

The Senate recently voted 87 to 12 to repeal the Patient Protection and Affordable Care Act, a law that would have required businesses to file a 1099 form for every vendor selling them more than $600 in goods annually, according to financial executive news site CFO.com. Currently, the law states that businesses must file a 1099 for any services received from an unincorporated firm, such as a partnership. Although the measure was unrelated to healthcare, it would have been used to generate tax revenue in order to help fund healthcare reform.

John Lauchert, owner of outsourced CFO services company Horizon CFO, said the new law "could have been a good way to strengthen tax compliance, since there's a lot of under-reporting of income that takes place, but practically speaking, it would have been an incredibly difficult process to go through."

U.S. President Barack Obama, who has said that he supports the change, must now sign off on the bill.

Some of the lost revenue will be offset by changing repayment requirements to mandate that individuals whose income increases will pay back federal healthcare subsidies. Beginning in 2014, low- and middle-income families will be provided tax credits to aid them in paying premiums, according to The New York Times. 

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