Reform Alert - News from the Blues' Office of National Health Reform

Form 1099 tax-reporting requirement for businesses repealed

April 27, 2011

The expanded 1099 reporting requirements in the Affordable Care Act have been repealed. These rules would have required businesses to: 

  1. Report payments for services of more than $600 made to corporations 
  2. Report purchases of goods of more than $600 to all payees (corporate and non-corporate). 

This mandate would have taken effect in 2012. 

To recoup the revenue lost by eliminating the reporting requirement, the Small Business Paperwork Mandate Elimination Act of 2011 changed the repayment requirements for individuals who receive subsidies to purchase coverage on the exchange beginning in 2014. Recipients will now be expected to repay a larger portion of the subsidy if their household income increases.

For more information, visit the IRS website.

The information on this website is based on BCBSM's review of the national health care reform legislation and is not intended to impart legal advice. Interpretations of the reform legislation vary, and efforts will be made to present and update accurate information. This overview is intended as an educational tool only and does not replace a more rigorous review of the law's applicability to individual circumstances and attendant legal counsel and should not be relied upon as legal or compliance advice. Analysis is ongoing and additional guidance is also anticipated from the Department of Health and Human Services. Additionally, some reform regulations may differ for particular members enrolled in certain programs such as the Federal Employee Program, and those members are encouraged to consult with their benefit administrators for specific details.

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