After the changes for this year tax returns, another threatening circumstances arise to make the U.S businesses worry. A provision on health reform law was overlooked and it may cause the U.S businesses to swim in pile of new paperwork.

According to the Heath Care Bill, Section 9006 – with a few lines in page 2,409 documents – mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

This occurrence alters the Form 1099 nature and leads businesses to issue thousands or even millions of newest tax documents every year.

Today, the main purpose of Form 1099 was to document the income of individual workers other than their wages and salaries. Freelancers also receive this document from their clients each year and for independents contractors, Form 1099 will be issued by the company who hire them.

But the new rules says, if ever a freelance designers bought a new iMac at the Apple Store, they’ll have to submit form 1099 on the Apple Store. A laundry shop who buys soap each week to their local distributor will now send form 1099 to the supplier so that every end of the year they can tally the goods their purchased.

This bill contains 2 keys that can instantly change how the form 1099 will be used. First, by expanding the scopes how they can track any payments came from services and tangible goods. Second, the form will not be issued only to individuals but also for corporations.
   
If used together, looks like these small changes requires to send millions of additional forms.