Senate rejects repeal of controversial Form 1099 reporting requirements starting in 2012.   Late yesterday,11/29/2010 the Senate voted to reject repeal of the expanded Form 1099 reporting requirements enacted in Sec. 9006 of the Patient Protection and Affordable Care Act (Affordable Care Act, P.L. 111-48). The amendments were considered as part of the FDA Food Safety Modernization Act (S. 510). Senate Amendment 4713 offered by SFC Chairman Max Baucus (D-Mont.) to fully repeal the rules without budgetary offset failed by a vote of 44-53. A competing amendment offered by Sen. Mike Johanns (R-Neb.) to repeal the rules but with a cost offset failed by a vote of 35-61.    In general, under current law, information returns must be made to IRS by every person engaged in a trade or business who makes payments for services, aggregating $600 or more, in any tax year to another person (other than corporations) in the course of the payor's trade or business. Effective for payments made after 2011, Sec. 9006 of the Patient Protection and Affordable Care Act would add payments of amounts in consideration for property and gross proceeds—i.e., it would add payments for goods—to the list of payments subject to reporting. In addition, it provides that starting in 2012, payments to corporations (that are not tax-exempt)—which had previously been exempt from the reporting requirement—would be subject to information reporting.