Senators will introduce '1099 repeal' later this month

Sen. Mike Johanns (R-Neb.) plans to introduce legislation later this month that would repeal controversial language in last year's healthcare law requiring companies to report goods and services transactions valued over $600 to the IRS. In a statement last week, Johanns said he would introduce his bill on Jan. 25, the first day Senate bills can be introduced in the new Congress.

Sen. Joe Manchin (D-W.Va.) said last week that he would co-sponsor the legislation.

Congress was close to repealing the language last year, but efforts stalled in the Senate when Democrats proposed eliminating the language without any way of making up the roughly $19 billion in revenue that would be lost to the government through the repeal. A Republican version offered by Johanns that included a "pay-for" actually received more votes in the Senate, but neither his version nor one offered by Senate Finance Committee Chairman Max Baucus (D-Mont.) received enough votes.

However, there is clear bipartisan support in both the House and Senate for repealing the so-called "1099 language," named for the 1099 form that businesses would have to file with the IRS. In the vote last November, senators were asked to suspend Senate rules in order to attach repeal language to a food safety bill, a move that required support from two-thirds of the Senate. Neither bill received two-thirds of the vote, but the Johanns language won 61 votes, as all 40 Republicans and 21 Democrats supported it.

President Obama also said last year that he supports repeal of the language, which is due to take effect in 2012.

In the House, Rep. Dan Lungren (R-Calif.) introduced 1099 repeal language as H.R. 144.