Hidden in plain sight
Often with legislation, provisions are added to a bill that have little to do with the bill itself. For example, the recently passed health care legislation contains a significant revision to the tax code that will affect you.
Section 9006 of the health care legislation states that as of Jan. 1, 2012, all businesses will need to issue 1099 forms to individuals or corporations from whom they procure more than $600 of goods or services.
So not only will you need to send 1099 forms to any independent contractors you hire, you will need to send forms to any supplier that provides you with more than $600 of roofing materials, for example.
The provision changes the current tax law in two ways: It now requires companies to track payments for tangible goods as well as services, and 1099 forms now must be sent to corporations as well as individuals.
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