Under the law, starting in 2012, businesses will be required to issue 1099s to any vendor from whom they purchase more than $600 in goods or services, including such things as office equipment, food, bottled water, gasoline, lumber and plumbing supplies. An exemption for corporations that had been in place under the previous law will be repealed when the new law takes effect. In many cases, companies will also have to report payments for things like travel, telephone and Internet service. The IRS estimates that the federal government fails to collect an estimated $290 billion a year in tax revenue on income that is not reported. The new 1099 reporting requirement is designed to close that tax gap between what individuals and businesses owe compared to what they actually pay. Additionally, Congress expects the 1099 measure to raise $17 billion in taxes and fees, offsetting part of the cost of health care reform.