House Ways & Means to markup 1099 repeal bill Thursday

The House Ways & Means Committee on Thursday will markup a bill that would repeal language in last year's healthcare law that requires companies to report goods and services transactions valued above $600 to the IRS.

The committee was expected to move ahead with a bill this week at some point. The Senate has passed so-called "1099 repeal," but did so as part of the Federal Aviation Administration (FAA) authorization bill. It is not clear whether the House would attach its own 1099 repeal to FAA legislation; if it does not, that could complicate passage, since the House and Senate will need to agree on identical language before it can become law.

Specifically, Ways & Means will look at two bills. The first is H.R. 4, which would repeal the language.

The second is an un-numbered bill that also repeals separate 1099 language passed last year as part of the Small Business Lending Act. That language would set up 1099 reporting requirements for families that own rental properties. The inclusion of this piece also complicates passage, as this language is not found in the Senate bill.

The House bills intend to pay for these repeals by recapturing overpayments from those who received more in premium assistance than they were entitled to. Congress approved a similar change to recapture overpayments last year in the context of the "doc fix" legislation, and the Obama administration were supportive of this pay-for.

However, this is a different way to pay for the change than what the Senate has proposed, which is another factor that could make passage more difficult.