On Friday, the U.S. House of Representatives considered H.R. 5982, which would have, among other things, repealed the new Form 1099 rules.
Unfortunately, the House was unable to pass the repeal of the new Form 1099 rules. See here. A summary of H.R. 5982 with respect to the new Form 1099 rules is quoted below. It is unclear when this will be taken up again by either the House or the Senate.
Provide small business tax relief by repealing certain information reporting requirements to corporations and to payments of property. Starting in 2012, businesses will be required to file information returns with respect to any person (including corporations) that receives $600 or more from the business in exchange for property and merchandise. Furthermore, businesses will be required to file information returns with respect to corporations that receive $600 or more in exchange for services or other determinable gains. The bill would provide relief for small businesses by repealing these requirements before they take effect. This provision is estimated to cost $19.206 billion over 10 years.
Many groups have come out against the new Form 1099 rules, including the AICPA.
The new Form 1099 rules change the old rules by requiring reporting of amounts paid for property and to corporations, meaning that if you are in business and go to the Apple store and buy a new computer, you are going to have to issue Apple Computer a Form 1099. Similarly, if you regularly buy office supplies from Office Depot, and your purchases add up to over $600 over the course of the calendar year, you are going to have to issue Office Depot a Form 1099.