According to a feature in CNNMoney.com, small business is in for a real surprise starting in 2012. A little provision in the health care reform legislation will now require small business to issue a IRS Form 1099 to every person or vendor to whom they pay $600.00, or more. The complete article can be viewed at:
“Section 9006 of the health care bill — just a few lines buried in the 2,409-page document — mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.”
The magnitude of this is the additional paperwork requirements that is being thrust onto not only small businesses, but individuals as well; and, is seen as yet another means to help pay for the cost of the health care program. Most adversely affected will be the small businesses who haven’t an accounting system, or accounting personnel, already in place.
Moe Lane
Steve Maley
KnightsofMalta
Dan Spencer
Dan McLaughlin
Whatta pain
hickorystick (Diary) Friday, May 7th at 12:25AM EST (link)These people never stop. In 2007, i must have received six different versions of the same form, because those new congress clowns couldn’t make up their mind. the form number isn’t coming to me right now.
Tax Preparation Software
southeasttexas (Diary) Tuesday, May 11th at 9:33AM EST (link)I’m pretty much a one-man operation, and use tax preparation software to do my federal taxes every year. What makes this worthwhile is that the software updates itself accordingly so I know I have all the necessary forms when I actually do file.
It will be interesting to see what I will have to use for all the vendors I use to acquire things for the business. I already use an accounting program on my computer, and it will supposedly help me prepare the 1099s I will need to comply with this law. If not, it will have to become yet another “hand-job” I’ll have to make time for.
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Update 05/23/2010
southeasttexas (Diary) Sunday, May 23rd at 4:52PM EST (link)As if the news regarding the issuance of Form 1099 isn’t enough, this comes to us from CNNMoney today:
http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
As someone who owns a small, one-man operation, and who does all of the business’s accounting so that I know where each and every penny comes from and goes to, this isn’t what I want to call a welcome tidbit of news. Let’s just hope my accounting software and tax preparation software are up to the new forthcoming challenges.
http://nationalchat.wordpress.com