A little-noticed piece of the new health care reform law (Section 2006) would dramatically expand the reporting requirements for 1099 forms. Currently, businesses have to file a 1099 only when paying an independent contractor more than $600. Starting in 2012, a business must file the form every time it makes cumulative purchases of $600 or more from any store or vendor during the year.
Opponents say this provision will increase paperwork for employers. Plus they say it will drive business away from smaller companies because most businesses won’t want the 1099 hassle with every small shop they buy from.