Baucus will introduce legislation to repeal 1099 requirement

The provision is estimated to raise $17 billion over 10 years to pay for a new prevention and wellness fund. 

Baucus said he would look for other ways to improve tax compliance and keep taxes low. The Treasury Department estimates that more than $345 billion in owed taxes go unpaid each year, he said. 

Eliminating the requirement has support from Democratic and Republican lawmakers and has recently picked up backing from President Obama and Speaker Nancy Peolsi (D-Calif.), who suggested this morning on NPR that the two parties could work together on the repeal. 

Efforts to repeal the requirement, which would go into effect in 2012, have failed because no agreement could be reached between Republicans and Democrats on how to pay for the change.