Bill Puts Kibosh on 1099 Nightmare

Currently, businesses are only required to send a Form 1099 to individuals who provide rent, interest, dividends and non-employee services in excess of $600 to a business. Payments to a corporation and payments for merchandise do not need to be reported.

The provision had been expected to raise nearly $25 billion during a 10-year stretch by ensuring that vendors pay their taxes. The money will be made up by changing another part of the health care bill, requiring more families to repay tax credits designed to help them cover insurance premiums.