What are the new proposed 1099 Reporting Requirements in 2011?
"The American Housing Rescue and Foreclosure Prevention Act, signed July 2008, apaprently triggered new 1099 reporting requirements starting January 1, 2011." It applies to payments including credit and debit card transactions on third party networks such as eBay or Amazon and payments to merchants.
The new law states "third party requirement is for networks with at least 50 accounts to report when they have over 200 transactions involving more than $20,000."
The Patient Protection and Affordable Care Act goes even further by requiring all businesses, tax-exempt organizations, and government entities to issue Form 1099 to all vendors from whom they purchased goods totaling $600 or more starting in 2012. But, payments made using credit cards (subject to the above) will be exempt.