President Obama has signed legislation to repeal a provision in the new health care reform law that would expand the reporting requirements for Form 1099-MISC. Without repeal, beginning in 2012 businesses and nonprofits would be required to fill out a Form 1099 for every for-profit organization to which they pay at least $600 for goods and services in a given year. Significant concerns were raised by the nonprofit and business community about the time and cost involved in complying with these regulations.

The Comprehensive 1099 Taxpayer Protection Act and Repayment Exchange Sudsidy Overpayments Act of 2011 (H.R. 4) repeals expansions of the 1099 reporting requirements that were included in the Patient Protection and Affordable Care Act (PPACA), as well as those extended to landlords by the Small Business Jobs Act of 2010. The $24.7 billion cost of the measure is offset by modifications to repayments of advance premium assistance tax credits for health insurance.

Independent Sector's Position: 
Independent Sector submitted comments to the IRS to address concerns raised by nonprofits and foundations about the new reporting requirements imposed by the health care law.