In 2012, business tax filers can expect to be buried under a mound of paperwork, as a little-known provision of the new health care law takes effect.
Section 9006 of the law states that all companies will have to issue 1099 tax forms not just to workers, but to  all persons and companies they do more than $600 worth of business with.
In crafting the law, the Internal Revenue Service (IRS) estimates more than $300 billion is lost annually in taxes on unreported income. Using 1099 forms, they believe, is a way to track that money down.
However, businesses will undertake a significant administrative burden to make it happen.
“For example, starting in 2010, if I do $600 worth of advertising, I’d have to give them a 1099,” said Steve Kresky of Accounting Solutions. “It’s going to make our job tougher.”
However, Kresky says there are workarounds, albeit at a price.
“One possible workaround is for everyone to get paid with a credit card,” Kresky said. If you pay with a credit card, you’re exempt. More people could be using them.”
The downside to this, according to Kresky, is that businesses will have to give 1 to 2 percent of that back to the credit card companies.
Already, legislation has been introduced in Congress to repeal the new 1099 requirements. Congressman Dan Lungren (CA-3) has introduced a bill to strike down the provisions. Currently it has 179 co-sponsors, and supported believe it will be taken up quickly by the incoming Congress in January.