Significant Changes to 1099 reporting for 2012 will require planning in 2011 and harsher penalties for noncomplianceJanuary 18th, 2011 by Susan Campbell
I recently read an article in the Nonprofit Times about the compliance changes we will all be facing in 2012 for reporting of payment to 1099 vendors. There is a new provision in the healthcare reform legislation that is designed to improve reporting and closing a tax gap.
Starting in 2012, the 1099 filing requirement is expanded to include gross payments of $600 or more to both corporate and non-corporate recipients, and are further expanded to include both payments for services and for property. This could significantly change the number of 1099′s that organizations will need to produce.
There are several changes to the penalities as well. I would encourage you all to learn about the changes that may impact what you need to track. The article is available at http://www.nptimes.com/11Jan/EXP-01182011.html?tr=y&auid=7632782
You should consider running a vendor payment report to review your payments in 2010, so that you can begin to prepare for what you will need to track in 2012.