Comments Requested on 1099 Expansion
The Patient Protection and Affordable Care Act contained an expansion of reporting requirements that will affect nonprofit organizations. Starting in 2012, nonprofits (as well as for-profit businesses) will have to issue 1099s to corporate service providers and vendors from whom they purchase at least $600 in services or goods in a year. Currently, nonprofits only have to issue 1099s to unincorporated service providers whom they pay at least $600 in a year. The IRS has requested comments on this issue, which must be submitted by September 29, 2010. See IRS Notice 2010-51 for more information.