Efforts fail to repeal reporting requirement for associations
Senate will not address 1099 issue again this year
The Senate recently failed to pass amendments that would have relieved new 1099 reporting requirements for associations, which some groups fear would be too voluminous to handle.
Sen. Mike Johanns (R-NE) offered a measure that would have repealed the provision from the new healthcare law; lost revenue would have been paid for by unused stimulus money. Sen. Max Baucus' (D-MT) bill would have repealed the provision without any offsets. Both bills failed to gain the required two-thirds majority vote.
The provision calls for associations to file a 1099 form for any business it conducts with a for-profit vendor in the amount of $600 or more a year.
Johanns has been leading efforts in the Senate to repeal the provision. An earlier Johanns bill that failed called for repeal and the lost revenue made up by easing the healthcare law's requirement for people to buy insurance, eliminating the need to fund health prevention. Another bill that failed, by Sen. Bill Nelson (D-FL), would have exempted some associations and raised the threshold from $600 to $5,000 for others (see "Bills defeated that would have repealed 'onerous' 1099 rules," 9/16).
American Society of Association Executives reports that this will be the last vote on the 1099 issue this year, but promises "to continue to work for a full repeal of the 1099 provision" in the coming year.
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