Big burden on small business - new 1099 filing requirements for 2012
by gigavero, Performer
- Created: August 10, 2010, 6:50 am
In an attempt to help pay for the health care spending bill Congress recently passed, a small provision unrelated to health care was added to page 737. According to this provision, any business making purchases from another business greater than $600 annually (in aggregate over the year) will need to get their Tax ID Number and send that business a 1099 form declaring the purchase.
While paying for the added cost of the health care bill (versus furthering the debt) is noble, this little provision is going to be a real stinker for my company. Currently we only have to file a couple 1099s each year to send to freelancers that work for us. In 2012 we'll need to file these for the majority of our purchases. Sure, it'll only take another 5-10 hours a year, but the value of that time lost is several hundred dollars.
So, my question for you is, how is this going to affect your business? If you think it will hurt you, how do we fix this? Do we try to repeal this specific portion of the bill? Do we contact the IRS and file a complaint?
Please share your thoughts.
P.S. I know we're not supposed to link spam this forum, but I think this article published by Business Week explains the 1099 situation far better than I ever could:
this post was edited to remove a commercial link
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