NU Online News Service, Nov. 30, 3:47 p.m.EST

WASHINGTON–Property and casualty trade groups urged Congress tokeep trying after the Senate failed late Monday to pass legislationthat would repeal a tax reporting provision of the health carereform law.

The provision, which the Independent Insurance Agents andBrokers of America called "burdensome" on small businesses, willrequire businesses that spend $600 or more with a vendor to file a1099 form with the IRS starting in 2012.

The effort to repeal the provision failed due to parliamentaryprocedures and the fact that the legislation, as proposed, did notfill the gap of $12 billion in expected revenue over five yearsthat would be lost by repealing the provision.

Both Democrats and Republicans agreed in floor debate that therule should be changed.

But, the Senate twice was unable to get the 67 votes needed.

Sen. Max Baucus, D-Mont., chairman of the Senate FinanceCommittee, said Monday that he and Sen. Mike Johanns, R-Neb., haveagreed to work out a compromise designed to facilitate repeal theprovision.

"We're obviously disappointed that the amendments weren'tpassed," said Matt Brady a spokesman for NAMIC.

"With broad support for repeal on both sides of the aisle,eliminating these burdensome requirements is something thatCongress can do right now to ease the concerns of small-businessowners across the country."

He added that "actions speak louder than words, and there is nobetter time than now for Congress to repeal the impending 1099requirements."

Leonard Brevik, executive vice president and CEO of the NationalAssociation of Professional Insurance Agents, voiced"disappointment" with the Senate failure to pass legislationconcerning the provision.

He said the expanded reporting requirement "places an onerousburden on small businesses, including independent insuranceagencies."

However, Mr. Brevik said, "We are optimistic that repeal will besuccessful–perhaps during the lame-duck session–in part because ofthe overwhelming support in the Senate."

Charles Symington, IIABA senior vice president of governmentaffairs, said the "mountain of paperwork required of smallbusinesses to comply with this burdensome new provision will divertresources and prevent investment in job growth and businessexpansion at a delicate point in the American economy."