Anxious tax departments can rejoice! By a 87-12 vote, the Senate passed legislation repealing the Form 1099 provision, which was included in health care reform.
Currently, Forms 1099 are required for payments of more than $600 to unincorporated service providers. The health care reform bill expands this requirement for 2012 to goods as well as services and applies to all types of vendors. Senate passage of the bill, which previously cleared the House, sends the bill to President Barack Obama for his signature. Once signed into law, the additional information reporting requirement which was included in the health care reform bill, will not be required.