A lot has been said about what the health care bill will mean to companies and what extra costs it will bring. One section that has not been talked about much yet is the massive change to the rules for issuing 1099s starting in 2012.
The change will require all companies to start issuing 1099 tax forms not only to contract workers but to any individual or corporation that they buy more than $600 in goods or services in a tax year. This means that if an accounting firm buys a couple computers from Best Buy during the year, they will have to send Best Buy a 1099. The amount of extra paper work and data collection could be staggering for some firms.
