Health Care Bill - Buried 1099 Reporting Change

You gotta love the health care reform bill. It is the gift that just keeps on giving. Seems our beloved legislators added another little goodie that was buried in the mostly unread 2,409 page document. Section 9006 mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to independent contractors but also to any "individual or corporation" from which you purchase more than $600 in tangible goods or services in a tax year.

Can anyone say bend over again small business and cough up some more bucks so big brother can make sure your not cheating them out of the due tax revenues.

This ridiculous new law will require millions of additional 1099 forms to be sent out. So, buck up my fellow business men and women. Your tax administrative burden just got a lot heavier.

The final impact of the new law won't be known until the IRS issues its regulations sometime next year. In any case, the new 1099 requirement is set to go into effect on January 1, 2012.