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.