Background: In March 2010, The Patient and Protection and Affordable Care Act (ObamaCare) was signed into law and required small businesses to report ALL vendor transaction activity for 2011 through Form 1099.
Update: In April 2011, President Obama corrected that single provision of the program by signing the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 that returns the 1099 rules of reporting to where they were before. We're not sure about the rest of the Act, but you can bet issues remain just by reading the title of it.
How this affects you: You are still responsible for reporting business payments to vendors using the same eligibility rules and thresholds of $600 as during previous years.
Take action now and go to www.CorporateChecklist.com to get started on updating your vendor information using the required W-9 forms to make 1099 reporting easier come January. Prepare while the information is fresh.