Businesses from coast to coast are enraged by the 1099 reporting requirements. Pro-business groups and the CPA profession are demanding that Congress repeal them. Pretty much every lawmaker in Washington admits the rules are ill-advised and should probably be repealed.
So when it comes time to vote on repealing the measure, what does the Senate do?
That's right — nothing.
At issue, of course, is a provision in the health care reform package that requires businesses to report to the IRS every purchase of $600 or more from a vendor of goods or services, beginning with purchases made in 2012.
Recognizing the burden such a rule would place on businesses, the Senate took up the 1099 issue on Nov. 29 with every intention of repealing the provision. As usual, though, politics got in the way.
According to the New York Times, lawmakers couldn't agree on how to replace the revenue that would be lost by repealing the rule. Democrats put forward a plan that would have repealed the rule but largely failed to address the revenue shortfall. It was soundly defeated. Republicans countered with a plan to repeal the rule and cut a number of other programs to offset the lost revenue. It, too, was defeated.
Once again, nothing gets accomplished because our elected officials are too busy scoring political points.
In other words, what else is new?
“Despite the inability to overturn the provision,” writes Carl Hulse of the New York Times, “Senate officials said they expected that another vote on repeal would come soon, given the support the idea has in both parties.”
The only question is, what will get in the way of progress then?
UPDATE: The American Society of Association Executives adds the following: ???”From what we've heard, this will be the last vote on the 1099 issue this year, leaving only one calendar year before the new 1099 reporting goes into effect.”
Update your browser to view this website correctly. Update my browser now