http://www.bizfilings.com/toolkit/news/tax-info/expanded-form-1099-reporting-repealed.aspx in Jun 2012 stated no need for filing.
but IRS website still states it:
http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-
http://cpabyers.com/helpful-resources/tax-laws-and-news/48-independent-contractorform-1099-misc-reporting.html says you need to in Nov 2012
The following penalties are in effect:
- $30 penalty for filing a 1099 not more than 30 days late with the calendar year maximum increased to $250,000 or $75,000 for small business filers;
- $60 penalty for filing a 1099 more than 30 days late and before August 1st with the calendar year maximum increased to $500,000 or $200,000 for small business filers;
- $100 penalty for filing a 1099 on or after August 1st with the calendar year maximum increased to $1,500,000 or $500,000 for small business filers;
- $250 penalty for intentional failure to file.
