Senator Mike Johanns (R-NE) introduced the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act today, according to a press release from his office.
This is a stand-alone bill that mirrors one introduced by House Ways and Means Committee Chairman Dave Camp (R-MI).
Johanns said in a statement that he “introduced the House version of 1099 repeal in hopes that it might get it to the President’s desk more quickly.”
This bill “accomplishes the goal of 1099 repeal that passed the Senate with 81 votes last month, but would offset the cost differently.”
To offset the cost of repeal, the bill would force greater repayment of improper, excessive and possibly fraudulent taxpayer subsidies, which would also reduce the deficit by more than $166 million over the first ten years. It additionally would repeal the expanded 1099 mandate on owners of certain rental properties that was included in the Small Business Jobs Act.
The spending reductions in the bill would:
- Require anyone earning more than 400 percent of poverty to pay back all improper payments;
- Require those earning less than 400 percent of the poverty level to pay back a greater portion than they are required to pay back under current law; and
- Save taxpayers $25 billion over the next 10 years by rooting out waste, fraud and errant overpayments.
The reporting requirement in question, which was part of the health reform law, forces companies to file an IRS form 1099 for each vendor from whom they make purchases of $600 or more.