Well, not everyone, but everyone who receives more than $600 from your business each year.

Starting January 1, 2012, business owners will be required to file additional paperwork with the IRS and send an IRS Form 1099 to any company or individual that receives more than $600 for goods or services sold to the business annually.

Included in the health care overhaul bill that was signed by President Obama, the small provision could have a big impact on businesses. The administrative burden of collecting the necessary information, including the vendor’s tax identification number, filling out the required paperwork, and verifying accuracy of the information could cost businesses thousands of dollars each year.

According to a recent article by Neil deMause on CNNMoney.com, the new tax provision “means businesses will have to issue millions of new tax documents each year.” Click here to read the full article.

The requirement was added to the health care overhaul bill as a “revenue raiser.” In addition to offsetting some of the costs of implementing the new changes in the American health care system, this “revenue raiser” was a way for the federal government to increase tax revenues without raising tax rates on corporations or individuals. Members of Congress were able to support the new tax-related change in the law without paying the political price of voting for a new tax or a tax increase.