The 1099 requirement on Landlords is going to have an impact even on the guy renting out one house. Assume that he has one plumber who he paid $600 to install a new dishwasher. First, he has to go to the IRS and get a form 1099MISC (or to an office supply store). He now has to fill out a 1099MISC for the plumber, get his social security (or EIN number), fill out a 1096 to forward the 1099 to the IRS (which probably was not part of the package he originally got), and then put a stamp on it to mail it to the IRS. That will take him 2 hours of time plus the gas to go to the IRS to get the forms, plus postage stamp. All told compliance will cost him $300. Tax generated to IRS by the 1099 = $250. Or he’ll choose not to deduct the $600 on his taxes and avoid the hassle. Aside from the fact, he just broke the law, his tax savings cost would only be $170. In other words, he saves $130 in taxes. If Congress had thought of making the reporting level $5000 (as recommended by Senator Nelson), it would have been reasonable. This is going to fuel the fire for independents who don’t mind paying their taxes, but hate the paperwork, if passed by the House and signed by the President.