February 18—Ways and Means OKs two competing bills to repeal new 1099 requirements; momentum builds in Senate to pass FAA bill. On February 17, the House Ways and Means Committee by a vote of 21-15 approved. H.R. 705, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011. Upon passage of H.R. 705, the text of a competing bill (H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011), which was approved by voice vote earlier in the day, was incorporated into H.R. 705. There were no other amendments adopted to H.R.705. Both bills seek to modify or repeal the new requirements imposed by Sec. 9006 of the Patient Protection and Affordable Care Act (PPACA), which provides that payments for goods and payments made to corporations (that are not tax-exempt) will be subject to information reporting beginning in 2012. H.R. 705 also seeks to repeal Code Sec. 6041(h) , which was added by the Small Business Jobs Act of 2010 and which treats recipients of rental income from real estate as engaged in the trade or business of renting property for information reporting purposes beginning in 2011. However, H.R. 705 provides an offset for the estimated $21.9 billion cost of repeal, whereas H.R. 4 does not. Also on February 17, the Senate by a vote of 92-2 invoked cloture (i.e. voted to cut off debate) on S. 223, the FAA Air Transportation Modernization and Safety Improvement Act, which includes a provision to repeal the Sec. 9006 reporting requirements. Unless time is yielded back, there remains 30 hours of debate on the bill before a vote on final passage of the measure. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidiary Overpayments Act of 2011 would similarly repeal the provisions in Sec. 9006 that provide rules for payments to corporations and impose a reporting requirement with respect to gross proceeds from property. However, it would also repeal Code Sec. 6041(h) 's application of information reporting requirements to recipients of rental income from real estate who are not otherwise considered to be engaged in the trade or business of renting property, and it would also provide an offset for the lost revenue from repealing the new information reporting provisions. The bill would increase the amount of excess advance payments of the premium assistance credit (enacted as part of the 2010 health care reform legislation to help lower-income individuals acquire affordable health insurance coverage) that a taxpayer must repay under Code Sec. 36B(f)(2) for tax years ending after Dec. 31, 2013. According to the JCT, the net effect of these changes over the 2011–2021 period would be a positive $166 million. Under current law, if the premium assistance credit received through advance payment exceeds the amount of premium assistance credit to which the taxpayer is entitled for the taxable year, the liability for the excess advance payment must be reflected on the taxpayer's income tax return for the taxable year subject to a limitation on the amount of such liability. For persons with household income below 500% of the federal poverty line (FPL), the liability for the excess payment for a taxable year is limited to a specific dollar amount.