As a part time CFO one of the areas that I watch for my clients is compliance. The recently passed Patient Protection and Affordable Care Act (Health Care Reform) included a provision that would have added a tremendous workload on all organizations. The provision required all organizations to issue 1099’s for all suppliers, both product and service, regardless of their incorporation status that provided over $600 in products or services and was to go into effect on January 1, 2012. On Tuesday the Senate, with an 87 to 12 vote, passed the House version of the repeal of this piece of the Health Care Reform and President Obama has already indicated that he would sign it into law.
With the repeal the current 1099 requirements will remain in place and organizations will provide 1099’s to all suppliers that are unincorporated and have activity over $600 per year.