This Health Policy Brief from Health Affairs focuses on the provision of the Affordable Care Act (ACA) that requires businesses to file a 1099 form for all purchases from a vendor totaling over $600. The intention of the provision was to capture additional tax revenue to help support the ACA. However, most agree that this would result in an unnecessary burden on small businesses, and for this reason, it seems likely that it will be overturned.

From the report: 

The Senate has voted to repeal one provision designed to help finance health reform, and the House is likely to follow. The target: a requirement that businesses file Form 1099 with the Internal Revenue Service (IRS) for all purchases made from any vendor totaling $600 or more per year.

This so-called 1099 provision doesn’t have anything directly to do with health care per se, but was designed to capture tax revenues that may be lost if businesses fail to report income. However, lawmakers from both parties and the Obama administration now support repealing the measure on the ground that it would place an undue burden on business, especially small businesses.

Full Report: The 1099 Provision (PDF | 115 KB) 

Health Affairs. (2011). The 1099 provision.