Senate sends repeal of tax reports to Obama

Updated at 5 p.m. ET

The Senate has cleared for President Obama's signature a plan to repeal a tax reporting requirement that is part of the nation's health care law.

"We are open to working with Republicans and Democrats to improve the health reform law and we are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses," White House press secretary Jay Carney said in a statement.

The provision affects nearly 40 million self-employed workers, companies and charities, according to the Internal Revenue Service

The House already passed its version of the measure.

Under the health care law signed by Obama last year, every self-employed worker, small business, charity and government agency is required to issue Form 1099s to every vendor from which they purchase more than $600 in goods during the year. The requirement was supposed to help fight tax fraud, but instead became attacked by both parties as burdensome.

The Senate passed repeal of the tax reporting requirement by a vote of 87-12. Sen. Mike Johanns, R-Neb., has tried seven times in the last eight months to overturn this portion of the healthcare law.

"Today, the wrench has finally been pulled from the gears of progress," Johanns said in a satement. "I appreciate that my colleagues have seen the wisdom of avoiding further delays and getting this costly, looming paperwork burden off the backs of our job creators."

Sen. Joe Manchin, D-W.Va., the lead Democratic co-sponsor of the bill, urged Obama to sign the measure into law. He said repeal of the 1099 provision "is an enormous victory for job creation and every small business in America."