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September 15, 2010 Wednesday 04:50 PM EST
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Senate Spurns Repeal of ‘Onerous’ Reporting Requirement for Agents and Brokers
Sean P Carr
WASHINGTON
The U.S. Senate rejected Democratic and Republican proposals to overturn a financial-reporting provision of the health reform act opposed by insurance agents and others as an unwarranted burden on small businesses. The Senate voted 61-37 to limit debate on a bill to assist small businesses, cutting off consideration of amendments proposed by Senators Mike Johanns, R-Neb. and Bill Nelson, D-Fla. Each offered significant changes to the Section 9006 of the Patient Protection and Affordable Care Act.This provision, effective in 2012, requires that all businesses, nonprofit entities and governments file a 1099 form with the Internal Revenue Service reporting any purchases of goods or services of $600 or more in a tax year. Under current law, the 1099 requirement only applies to services when the vendor is an unincorporated person or business (BestWire, Sept. 10, 2010).Without a change by 2012, agencies and other small businesses will face an overwhelming reporting requirement, said Mike Becker, director of federal affairs for the National Association of Professional Insurance Agents. A full repeal remains a top PIA priority, he said. The U.S. Chamber of Commerce and the National Federation of Independent Businesses are also calling for a repeal.“While Congress has a very limited work schedule for the remaining year, we will explore any options that exist to fix this onerous mandate,” Becker said. “If not, this is an issue that we will continue to tackle moving into 2011, when a potential change in the makeup of Congress could improve chances for a repeal.”The Johanns amendment was an outright repeal, paid for in part by cutting $11 billion set aside for prevention efforts and public health programs. Nelson’s would have exempted businesses with 25 employees or fewer and raised the threshold from $600 to $5,000; it would have been funded through a repeal of a 2004 tax break for the oil industry.“This provision will significantly increase costs and bureaucratic red tape for businesses and charities across the country,” Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, said in a statement. “At a time when our economy is foundering, it’s troubling to see the Senate vote against this common-sense amendment. Instead, money that could be used to hire new employees or re-invest in a business will go to government coffers.”(By Sean P. Carr, Washington Correspondent: sean.carr@ambest.com)
September 16, 2010
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