Battle Continues for Repeal of 1099 Reporting Requirement
December 1, 2010
Two measures that would have repealed the new requirement for businesses, including colleges and universities, to file Forms 1099 on purchases of goods or services over $600, failed to pass in the Senate last week.
Enacted earlier this year as part of the Affordable Care Act, the new requirement is estimated to generate about $19 billion in revenue over a ten-year period. Business groups, including higher education, are opposed to the measure and have lobbied throughout the year, calling for its repeal. In Congress, there is widespread, bipartisan support for repeal, including from Senate Finance Committee Chair Max Baucus, sponsor of one the amendments that was voted down last week.
So far, stumbling blocks have been disagreements among Senators about how to pay for the $19 billion that repeal will cost the government, and whether the legislation reopens the health care reform bill for further changes. Going forward, the provision's "price tag" could present a growing challenge in a political climate where members of both parties are under intense pressure to lower the federal deficit and to preserve, if not enhance, existing revenue streams.
Senator Baucus and others are committed to revisiting the issue, though it now appears unlikely to be considered by Congress until next year. Unless Congress repeals or postpones the provision, the new requirement goes into effect on January 1, 2012.
Director, Tax Policy
- Final Rules Issued on the Violence Against Women Act
- FASB Gives Go-Ahead for Exposure Draft on NFP Reporting
- CDC Advises Colleges, Universities and Students about Ebola
- 2015 Intermediate Accounting and Reporting - Winter
January 22-23, 2015
- 2015 Endowment and Debt Management Forum
February 4-6, 2015
- 2015 Unrelated Business Income Tax
February 25-27, 2015
- WEBCAST: How to Build, Develop, and Support a Compliance Program at Your Institution
Wednesday, November 19, 2014 1:00PM ET
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis