Small-business owners face a deluge of IRS paperwork under new 1099 regulations for 2012
by CrestCapital, Creator
- Created: July 16, 2010, 9:58 am
Are any of you (with experience running a small business) concerned about the negative impact that the new paperwork regulations the IRS is about to impose on sole proprietors and small business people?
Check out the article CNNMoney.com //ht.ly/2a8QQ
The new regulations, which kick in at the start of 2012, require any taxpayer with business income to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services that year. That promises to launch an absolute avalanche of new paperwork! An estimated 40 million taxpayers will be subject to the requirement, including 26 million who run sole proprietorships
The expanded reporting requirements, which Congress slipped into the landmark health care reform bill passed in March, are an attempt to create a paper trail of 1099s exposing business-to-business payments that might otherwise stay off the radar.
But the cost of that paper trail could swamp the small companies, sole proprietors freelancers forced to generate it. Pennsylvania business networking organization SMC Business Councils surveyed its members and found that they currently average 10 filings a year of 1099 forms. The new rules would push that average to more than 200 filings per year for a typical small business.
Anyone think all this paperwork is a bad idea when small businesses are already struggling?
this post was edited to remove a commercial link
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