NOW IS THE TIME TO START GEARING UP FOR 1099 REPORTING

The Health Care Reform Act has a provision that requires 1099s for goods, not just services, starting in 2012.

Beginning in 2012, self-employed individuals, small businesses and charities will be required to provide 1099 forms to every vendor from which they buy more than $600 in goods, under a provision in the new health care reform law. The Internal Revenue Service is considering exempting some small-business purchases made with credit or debit cards, as the IRS will already receive a record of those transactions from financial institutions, starting in 2011. "We're looking at ways to try to minimize the burden on businesses as much as possible," said IRS spokesman Terry Lemons. USA TODAY