Client's biz name changed: Should I update or create new contact info?

I have a client that had to dissolve their first business and reform it under a new name mid-year, but they are still doing the same work (publishing the same magazine). Should I deactivate the original contact info and create a new contact for the new company name, or should I simply update the existing contact?

I ask for 2 reasons:

1) Tax reporting: If I will need 2 separate 1099s from this person (for the two separate companies) then maybe it would be best to have two separate contacts so that my records are also split by company. But if it doesn't matter to the IRS as long as the totals match, then it definitely would be easiest to just update the contact.

2) Zoho quirk: When I tried to create a new contact for this new company, Zoho said I couldn't have two contacts with the same contact information.

What have you done in this situation?