On April 14, 2011, President Obama signed legislation (H.R.4) repealing the “1099 reporting requirement,” which would have required businesses to file a 1099 Form for purchases from vendors for goods or services of $600 or more annually starting in 2012.
Even though the 1099 reporting requirement was not related to health care, it was created by the Affordable Care Act and would have generated revenue to help pay for health care reform. Instead of gaining money from better reporting of taxable transactions, H.R. 4 helps pay for health care reform by increasing in 2014 the amount people will have to repay when they misreport income and receive larger subsidies (tax credits in advance to pay for health insurance) than they are eligible for, based on their correct income.