This is required under section 6041 of the Internal Revenue Code. The Section also requires that person must provide the payee with a copy of the Form 1099.

Effective for payments made after December 31, 2011, the Patient Protection and Affordable Care Act (PPACA) expanded the information reporting requirement to include payments to a corporation (except a tax-exempt corporation) and payments for property.

In the 111th Congress, several bills have been introduced in both chambers that would repeal the modifications made to Code section 6041. S. 3578 filed by Senator Mike Johanns (R-Neb.) and a companion bill H.R. 5141 filed by Rep. Dan Lungren (R-Calif.), would repeal section 9006 of the PPACA. Similar language was proposed by Senator Johanns in S.Amdt. 4513 to H.R. 5982, The Small Business and Jobs Credit Act of 2010. Senator Bill Nelson (D-Fla.) also filed an amendment to the Small Business bill, S.Amdt.4595, which would have increased the $600 threshold to $5,000.

The budget proposal would repeal the IRS Form 1099 corporate information reporting requirements that were imposed by last year's health care reform law, and replace those requirements with a more narrow information reporting rule. The proposal would require businesses to file an information return for payments for services or for determinable gains aggregating to $600 or more in a calendar year to a corporation (except a tax-exempt corporation). The proposal costs $9.2 billion over 10 years.