Amidst all the ruckus over the health care bill that recently passed, several important provisions have largely gone unnoticed. For instance, tucked within the 2,000-some pages of the Patient Protection and Affordable Care Act (H.R. 3590) is a provision that affects 1099 reporting.
Specifically, businesses now will have to file Form 1099s for all payments they make, including those to corporations, that total $600 or more to a single payee in a calendar year, the Journal of Accountancy reports. So, the previous 1099 reporting exemption for corporations will end, other than for tax-exempt organizations. This provision becomes effective for payments made after December 31, 2011. The first 1099s under the new regulations will go out in 2013.
