Businesses currently are required to file 1099s for payments to a single recipient in connection to their trade or business totaling at least $600. The type of payment that most commonly triggers this reporting requirement is payment for services.  In 2012, the health care reform bill was to expand this requirement. Small businesses and charities were to include every vendor they purchased goods and services from in excess of $600. The mandate applied to everyday purchases, like shipping costs, supplies, even internet and phone service.

Additionally, for payments made after 2010, the Small Business Jobs Act of 2010 provided that, subject to limited exceptions, a person receiving rental income from real estate would be treated as engaged in the trade or business of renting property for information reporting purposes. In particular, rental income recipients making payments of $600 or more to a service provider such as a painter or plumber would have to provide a 1099 to the service provider and the IRS. For payments made after December 31, 2010, the Act also repeals this expanded 1099 reporting for rental property owners.

Revenue offset. The Act provides an offset for the lost revenue anticipated from repealing the expanded 1099 requirements, estimated at $21.9 billion. The government will try to recover some of the income by requiring individuals to repay as much as $2,500 a year for their health care if they received higher subsidies for health insurance than they should have due to a rise in income. This could affect individuals with even a slight rise in their income.