While the House recently failed to eliminate a controversial tax provision that critics say would unfairly burden small businesses, lawmakers on Capitol Hill say they will keep trying, AOL Small Business reported.

Sen. Mike Johanns (R-Neb.) vowed to continue pushing for a repeal of Section 9006, which failed to pass the House during a vote on Friday.

As AOL Small Business previously reported, Section 9006 is tucked away in the new health-care law, which goes into effect on January 1, 2012. From then on, U.S. companies will be required to issue 1099 tax forms to all businesses and individuals that they purchase more than $600 in goods from. (They already do this when they purchase more than $600 in services from businesses and contract workers.)

Proponents of the measure say that by not reporting these purchases currently, the federal government loses more than $300 billion in tax revenue every year.

Opponents say the added paperwork, and being forced to track what companies are buying and from whom, will overwhelm business owners and freelancers. They also claim the IRS may not be equipped to handle the new influx of paperwork.

While both Republicans and Democrats have expressed support for a repeal, they have not yet agreed on where revenue to replace it should come from.

Democrats wanted to raise taxes on international corporations and limit taxpayers from using special trusts to avoid gift taxes. Republicans wanted to adjust some parts of the new health-care law.