House moves to repeal tax filing requirement

WASHINGTON (AP) — An unpopular tax filing requirement for businesses that was included in the new health-care law would be repealed under a bill headed for a vote in the House late today.

A provision tucked into the new law would require millions of businesses to file tax forms for every vendor that sells them more than $600 in goods each year, starting in 2012.

The requirement is projected to raise nearly $25 billion over the next decade by ensuring that vendors pay their taxes. But lawmakers in both parties say it could create a paperwork nightmare for businesses and the Internal Revenue Service.

The filing requirement is so unpopular in Congress that it is unlikely to ever take effect. The House is scheduled to vote to repeal the filing requirement today. The Senate passed a similar measure last month, and attached it to an unrelated bill to help modernize the nation's air traffic control system.

However, Democrats and Republicans — and the House and Senate — disagree on how to make up the potential revenue, so the debate could drag on for months.