Major changes to information reporting requirements have been signed into law. The recently-passed health care legislation broadens the scope of who gets a 1099 and for what.

The Patient Protection and Affordable Care Act (PPAC) was signed into law on March 23, 2010. Although the primary focus of the bill was to overhaul the United States’ healthcare system, the act directly impacts 1099 reporting.

According to Section 9006 of the PPAC Act, corporations are no longer exempt from 1099 reporting (with the exception of nonprofit corporations). In addition to removing the corporate exemption, the act also requires that 1099s be reported for purchases of goods and services.

If you make purchases (goods or services) of more than $600 in a calendar year from a single payee, then those payments will be 1099-reportable once these changes take effect. Fortunately, organizations have some time to prepare. These changes will apply to all payments made after Dec. 31, 2011, meaning they would cover payments made in 2012. Your first 1099s under these new rules would go out in 2013.

Although these changes were passed in the new health bill, they are not new ideas. The White House and Congress have been trying to require corporate reporting for years. The measure was included in budget proposals issued by Presidents Bush and Obama.

"This has bipartisan support," says Doug Rogers, director of consulting services at IRSConsulting. "It was never a matter of if, but when."