September 25, 2010
If you're like many businesspeople, you may not have noticed the inclusion of a provision related to IRS Form 1099 in the new health care reform law. The current law requires that companies submit a 1099 to report payments to individuals and partnerships totaling more than $600 in one year. However, the new provision significantly broadens the application of the 1099 rule to include corporations (previously exempt) and the sales of goods (previously,
rents, services and financial transactions were covered). Long story short, many companies will be required to generate many more 1099s each year.
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