Are you aware of the legislation that is in place currently, as part of the health care reform, which will REQUIRE you as a business owner to file 1099 forms for nearly every purchase over $600?
Section 9006 of the health care bill — 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.
Think about it -
- How much do you spend in office supplies? Oh yeah, need to file an Office Max 1099 for that …
- Purchased a new computer this year? Send Best Buy 1099, or Apple…
- Buying airline tickets to attend Embroidery Mart? File a Continental Airlines 1099…
Are you KIDDING ME???? From what I can see, this is a nightmare ready to happen. Running a successful business is challenging enough as it is!
Luckily, someone in our government has a brain and is aware of the overwhelming impact that this will have small business owners. Rep. Dan Lungren, R-Calif., introduced legislation entitled the “Small Business Paperwork Mandate Elimination Act” (HR 5141).
Read about it here on CNN: http://www.nnepblog.com/1099Reporting
Or here on the National Association of the Self Employed’s website: http://www.nnepblog.com/NASE-1099
And then, more importantly, DO SOMETHING about it here: WRITE your Congressman
Apparel decorators represent nearly 32,000 businesses in the US. This is one time we when need to make sure that WE ARE HEARD, en masse!
TODAY I am writing to the politicians that get their paycheck from me as an Ohio business owner, resident and tax payer, and I challenge you to do so as well.
UPDATE: I just wrote to my Congressman using the link above, and have asked his position on HR5141. His answer certainly will influence my decision on how I vote when election time rolls around this Fall.
UPDATE: Here is the response I recevied for my congressman:
June 21, 2010
Mrs. Jennifer Cox
4693 Kent Rd
Kent, Ohio 44240-5206
Dear Mrs. Cox:
Thank you for contacting me regarding H.R. 3408, the Taxpayer Responsibility, Accountability, and Consistency Act. I appreciate you taking the time to share your thoughts and concerns with me.
As you may know, H.R. 3408 was introduced by Representative Jim McDermott on July 30, 2009 to amend the Internal Revenue Code to require reporting payment of $600 or more made to corporations and rules relating to the treatment of workers as employees or independent contractors. This bill currently resides in the House Committee on Ways and Means. I do not have the privilege of serving on this committee; however, should the measure reach the floor for a House vote, I will be mindful of your position.
Once again, thank you for taking the time to contact me. Should you have any questions, please do not hesitate in contacting me again.
Very truly yours,
Steven C. LaTourette
Member of Congress
