House passes repeal of purchasing paperwork requirement

A little-noticed provision of the health care law included this requirement: That all businesses report to the Internal Revenue Service, via a form 1099, any purchase of more than $600. The idea was that this new requirement would increase compliance and thereby increase revenues.

Both Republicans and Democrats have said they would like to repeal the requirement because it's simply too much hassle for business owners. But if lawmakers simply repeal the requirement, it will increase the deficit by about $10 billion over 10 years. So they're looking for other measures to increase revenues to include with the repeal, so the law will not add to the deficit.

The House passed a bill on March 4, 2011, repealing the requirement but also slightly reducing subsidies for people of modest income who qualify for health insurance.

Senate majority leader Harry Reid said the Senate was considering other ways to offset the costs of the bill.

We don't know the ultimate fate of the rule repeal, but a version has passed the House. So for now, we rate this promise In the Works.