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Senate Holds Onto 1099 Reporting Requirement

Kelly Phillips ErbNovember 30, 2010

Remember those expanded 1099 reporting requirements that were included in the health care bill? It was all anyone could talk about for quite awhile. Clearly underestimating the rage of voters and business owners, members of Congress (yes, the same ones that voted it in) vowed left and right to do away with it.

Apparently, those folks in Congress have a short memory. Today, the Senate had not one but two opportunities to do away with the requirement. Two separate amendments which would have addressed the 1099 issues were introduced to the Food Safety Modernization Act by Senate Finance Committee Chair Max Baucus (D-MT) and Sen. Mike Johanns (R-NE). The Act passed but neither amendment did.

Notwithstanding the craziness that is attaching a tax clause to a “food safety” act (which I guess makes as much sense as including it in a health care bill to begin with), I’m surprised that neither amendment made it out of the Senate alive. Apparently, the point of contention was the cost of the respective amendments.

Sen. Baucus isn’t calling it quits, however. His version of the amendment failed 44-35, and Baucus conceded that he would not be able to secure 67 votes in the current session. Noting anger over the original provisions, he said:

I am disappointed that we weren’t able to repeal these requirements today, but I intend to keep working until we do.

Noting the bipartisan split on the two amendments, Sen. Baucus vowed to work with Sen. Johanns to reach a compromise bill in the future.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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Baucus, Food Safety Modernization Act, health care bill, Johanns

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One thought on “Senate Holds Onto 1099 Reporting Requirement”

  1. J G says:
    November 30, 2010 at 8:10 pm

    It’s a shame that tar and feathers are so hard to find these days.

    Reply

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