Calif. GOP Congressman Challenges Reporting Mandate in Reform Law

On Monday, U.S. Rep. Daniel Lungren (R-Calif.) introduced legislation (HR 5141) to repeal the business reporting provision of the new health reform law, The Hill's "On the Money" reports (Heflin, "On the Money," The Hill, 4/26). The bill represents the first legislative challenge to the law (Adler, Capitol Public Radio, 4/26).

The provision Lungren is challenging would require all businesses starting in 2012 to report to the Internal Revenue Service the details of any transaction in which they purchase more than $600 worth of goods or services from another business. The mandate aims to collect lost revenue from companies that under-report on their tax returns. The provision is expected to raise $17 billion over 10 years.

According to Lungren, IRS is awaiting instruction from HHS on how to enforce the reporting requirement ("On the Money," The Hill, 4/26).

Lungren said that small businesses do not have the resources to comply with the reporting requirement. He also called the provision a "rat tax" because it requires companies to report on the companies they do business with.

Lungren's bill would eliminate the provision from the health reform law (Lubell, Modern Healthcare, 4/26).  The legislation awaits action from the House Ways and Means Committee ("On the Money," The Hill, 4/26).