Even More 1099's

In 2012, additional 1099 reporting requirements are due to take effect, unless Congress repeals them. They would require that anyone with any business income issue 1099s to any vendor to whom they paid at least $600. Payments for both goods and services would require 1099s. (Under current law, payments for goods are not covered, and the focus is on payments to unincorporated individuals.)

Congress and the President have talked about repealing this new requirement, because nobody likes it. However, because it is projected to generate over $200 billion in tax revenues over the next 10 years, they have to figure out how to plug that budget gap if they repeal it. There is a lot of momentum on the side of repealing it, but it may not be easy.