The Health Bill contained several new mandates, but one could be much more costly and become a processing nightmare. A few wording changes to the tax code’s section 6041 regarding 1099 reporting were included in the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions of additional IRS Form 1099s every year. The health care bill includes a vast expansion in this information reporting requirement that is to be effective beginning in 2012 unless repealed.

Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. 

The following link will give information regarding failure of the second effort to repeal the changes to 1099 reporting; we will keep you apprised of this changing situation. http://news.bookweb.org/news/second-effort-repeal-1099-reporting-requirement-fails