NU Online News Service, Sept. 10, 3:50 p.m.EDT

The National Association of Professional Insurance Agents (PIA)has joined a host of insurance trade groups asking the Senate toquickly change a health care law tax reporting provision scheduledto go into effect in 2012.

In a statement, PIA called for repeal of the provision.

Sec. 9006 of the new health care law requires businesses of allsizes, as well as governments and nonprofits, to file a 1099 formwith the Internal Revenue Service reporting any purchases they makeof goods or services of $600 or more in a tax year from anyindividual or business, including corporations.

Currently, businesses only need to file 1099s when they buyservices, and only when the vendor is an unincorporated person orbusiness.

Earlier, the Independent Insurance Agents and Brokers of Americaand the National Association of Insurance and Investment Advisorshad joined the widespread call for repeal or modification of theprovision

"This places an unacceptably onerous burden on businesses of allsizes," said Leonard C. Brevik, PIA executive vice president &CEO. "If allowed to take effect, this provision will impose asubstantial reporting and paperwork burden on governments,nonprofits and businesses–especially small businesses–dramaticallyincreasing costs."

He added, "Small business is the growth engine of the Americaneconomy, and this provision throws sand into that engine."

An amendment sponsored by Sen. Mike Johanns, R-Neb., wouldrepeal the provision. The Johanns amendment replaces the almost $18billion in lost revenue by adjusting the subsidies for individualpurchases of health insurance.

Sen. Harry Reid, D-Nev., and Sen. Max Baucus, D-Mont., haveintroduced a Democratic alternative sponsored by Sen. Bill Nelson,D-Fla., that would modify rather than repeal the controversialprovision.

The Democratic substitute exempts credit cards from theinformation reporting requirement, lifts the threshold for 1099reporting from $600 to $5,000, and exempts firms "employing notmore than 25 employees at any time during the taxable year."