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Senate’s 1099 repeal could reduce physicians’ paperwork

February 16, 2011

A recent Senate vote on a tax form requirement could ease the paperwork burden for healthcare offices.

The Senate recently voted to repeal a provision meant to help finance the healthcare reform bill. The Internal Revenue Service requires all businesses to file Form 1099, which details all purchases made totaling $600 every year.

The “1099 provision” is meant to collect $19 billion in taxes that would be uncollected between 2010 and 2020, according to a Health Affairs health policy brief.

The Senate’s bill repealing the provision demands federal spending cuts to replace the lost revenue, the brief reports. Though the 1099 form is only one revenue-collecting tactic built into the Affordable Care Act, lawmakers have struggled to find an alternative source of funding.

At a recent hearing on the bill held by the House Committee on Small Business, Representative Sam Graves, Republican from Missouri, blasted the form as an unnecessary burden on small business owners.

Senator Debbie Stabenow, Democrat from Michigan, hailed the Senate’s vote to end the 1099 requirement, saying it would free up time for small business owners.

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