One of the provisions in the Health Care Reform Bill which is gaining a lot of attention is the change in the 1099 reporting requirements. Currently, 1099′s only need to be filed for service providers or independent contractors who are paid more than $600 in a year. The change in the Health Care Reform Bill which will take effect in 2012 will expand 1099 reporting requirements to any providers of goods and services paid more than $600 in a year. It also will require 1099 reporting for purchases from corporations, which are currently exempt. The changes will cause an explosion in 1099 filings. Small business will be hardest hit, and could see 1099 filings raise from a handful to double digits.
Filed under: Federal Income Tax, Tax Tagged: | 1099, health care tax implications, Internal Revenue Service, IRS, Obama Health Care Reform, supplier tax reporting
[...] in congress over the plan it is expected to pass. Meanwhile, an attempt to reform the pending massive extension of 1099 reporting failed in a Senate Finance Committee and will not be taken up until the 112th Congress convenes. [...]
[...] Health-care Reform Law’s 1099 reporting requirements. As I have written about in the past, here and here, the 1099 rule was going to significantly expand the reporting requirements by not longer [...]