Many are not aware of this, but
Section 9006 of the health care bill [money.cnn.com] contains a provision that has nothing to do with health care, but will potentially affect all U.S.-based businesses.
Starting in 2012, businesses will be required to issue 1099s to ALL businesses where they spend $600 or more, not just to individuals. This means that at the end of every year, you will have to go through your receipts and figure out every place where you spent more that $600, exactly how much you spent there, and then figure out how to get their tax ID to issue a 1099.
Do you have a favorite local business where you take clients to lunch frequently? You'll probably have to issue a 1099. Fly more than a couple of times a year for business? Issue to 1099 to your airline of choice. Bought a new Dell computer for your business? There's another 1099. Use your car a lot for business? Good luck allocating all your gas purchases between Shell, Texaco, and all the other gas stations that you use!
Most likely, the better credit card companies will probably issue annual summaries. But how about all those companies where the employees use their personal cards and get reimbursed by the company? What a nightmare if those amounts are to be included!
Oh, there's also the issue of being caught between the IRS and the vendor who issued an inflated 1099 to you. The IRS will initially go after YOU because your numbers don't match what was reported. Yes, the heat will eventually go to the vendor, but it's still a lot of time and resources that YOU will have to spend for something that wasn't your fault to begin with.
REMINDER: Please keep politics out of the discussion. Although this issue is part of the health care bill, all other parts of the health care issue are off limits for this discussion.
