New 1099 Rules in Health Care Legislation

I may be behind the curve, but I just learned about this in a class I attended yesterday. It seems that there are new 1099 reporting rules buried in the 2,400 page health care legislation that was passed earlier this year.

These new 1099 rules, if not repealed, will go into effect in January 1, 2012 and will require reporting payments of more that $600 to all vendors not just independent contractors. This will also require collecting TINs from all vendors.

The net effect will be that it will require more time, cost, and effort to collect TINs from all vendors as well as more time and effort preparing 1099s. For example, we normally do a handful of 1099s for independent contractors each year. After 2012, we'll have to prepare several hundred 1099s each year.