Industry News
August 17, 2010
Expanded 1099 Reporting
In a misguided attempt to raise revenue, the new Health Care Bill enacted sweeping new 1099 reporting with a dramatic increase in penalties. Beginning for payments made after December 31, 2011, companies will be required to furnish and file form 1099-MISC for payments made to all for-profit companies regardless of corporate status. The corporate exemption has been eliminated. In addition, all payments for goods, materials, merchandise, supplies, and other property must be reported. The change means companies such as Staples would be the subject of 1099 reports for supplies purchased. A drive has already started to change the new law before it becomes effective, the outcome of which remains uncertain.
