Monday, May 24, 2010
Did anyone who voted for the health care bill actually read it?
Small businesses threatened with 1099 tax form tyranny provision in health care bill
But the new change (conveniently slipped into the health care bill that nobody actually read prior to voting on it) drastically expands the scope of 1099s. Not only will contract workers be receiving them, but so will millions of individuals and companies that receive more than $600 in payments for services and products they provide throughout the tax year.
And if you're a small business owner, you will be required to issue a 1099 to every business from which you purchased more than $600 worth of goods or services.
If you buy a laptop at Best Buy, for example, you will be required by law to issue a 1099 form to Best Buy. If you purchase over $600 in internet services, you need to issue a 1099 to your broadband provider. If you get a car repair over $600, you have to issue a 1099 form for that, too.
This law might as well be called the "Accountant employment act of 2010" because it will drastically expand the mountain of tax paperwork needed to be filed by all U.S. small businesses and corporations.