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1099 Repeal Fails on First Senate Vote

The Senate has failed to repeal an unpopular new tax reporting rule, but backers of repeal say another vote is likely.

The reporting requirement, part of the healthcare reform law, says companies must file an IRS form 1099 for every vendor, supplier or contractor to whom they pay at least $600 during a year.

The repeal amendment was to be attached to a food-safety bill, but the amendment came to the Senate floor Nov. 29 under a rule that requires 67 votes for passage. A Republican version of repeal attracted 61 votes; a Democratic version failed 44-53.

The reporting provision takes effect in 2012 unless Congress acts. Sen. Kay Bailey Hutchison, R-TX, described the requirement as “one more overbearing government intrusion on free enterprise in our country.”


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