Repeal of 1099 provision punted to next Congress

Senate Finance Chairman Max Baucus (D-Mont.) failed to win approval Wednesday to pass his bill to repeal the 1099 tax-filing requirement, sending the issue to the next Congress. 

Baucus asked for approval of his bill to repeal the provision but Republican Sen. John Barrasso (Wyo.) objected to the move, requesting instead that his bill be substituted with the text of a bill offered by Sen. Mike Johanns (R-Neb.) that would use unobligated federal funds to be identified by the Office of Management and Budget to cover the cost of the repeal. 

Lawmakers are in agreement about eliminating the 1099 provision included in the healthcare law, which would require businesses to report all supply purchases of at least $600 or more with one vendor, but haven't decided how to pay for it. 

The provision doesn't go into effect until 2012, so lawmakers have some time to figure out a way to pay for the bill. 

"Today we should have — and could have — delivered the paperwork relief small businesses need," Baucus said. "Eliminating these paperwork requirements is a simple, common-sense idea that Senators on both sides of the aisle support and it is deeply disappointing to see partisanship stand in the way of progress for small business owners."