Consultant: 1099 repeal seems likely
Is the repeal of health care's 1099 expansion imminent? Towers Watson consultant Regina Ihrke thinks so.
During her presentation during True Value's Spring Market, Ihrke interpreted remarks in President Obama's State of the Nation address as a signal that the 1099 provision buried deep in the health care legislation will be repealed within the next year.
"This was snuck in there, and it would be administratively burdensome, especially for all small employers out there," Ihrke said. "I think he tried to make that point without saying those words."
The 1099 expansion -- a provision calling for all purchases of products or services amounting to $600 or more to trigger the filing of a 1099 form -- has been one of the more contentious features of health care reform. Designed to generate more tax revenue, the provision has been blasted by business advocates as a paperwork nightmare for businesses.