The Senate approved an amendment on Wednesday, February 2 to repeal the expanded 1099 information reporting requirements in the health care reform law.

Two similar, but competing amendments were also introduced by Democratic and Republican lawmakers to be attached to a larger re-authorization bill for the Federal Aviation Administration. To view details about these amendments 1099 Repeal Amendments Proposed for Aviation Administration.

The two amendments mainly differed in a few words regarding the handling of administrative expenses at the Social Security Administration. To avoid adding to the budget deficit, the new amendment authorizes the director of the Office of Management and Budget to cut unnecessary unobligated spending, but exempts the Social Security Administration's administrative expenses from being cut. There are also differences in the cost estimates of the two amendments and in how they would be offset.Advertisement

The repeal of the 1099 reporting requirements enjoyed broad bipartisan support with an 81-to17 vote. The requirements, which were included in the Patient Protection and Affordable Care Act, would have required businesses to report to the Internal Revenue Service any purchases of goods and services over $600 a year from another business or individual. Eliminating these paperwork requirements lets small businesses focus on the critical work of growing their businesses and creating jobs.