Understanding small businesses II

I'd like to thank the Obama administration for adding about $10,000 to my bottom line next year.

Why?

See, BO (Before Obama) businesses were required to issue 1099 forms to any sole proprietor, partnership or LLC who was paid more than $600 for services rendered. I guess somehow it was deemed important to country's healthcare bill to add corporations to that.

So what does this mean? It means that my utility company gets a 1099, my phone service, Intuit, Office Max, Office Deport, Shell Oil, Sam's Club, Costco, etc., etc..... In fact, where I used to issue two 1099's a year, now that number is going to be at least 20.

An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.

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 stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.

But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.

Guess who's going to make lot's of money off of this? Gordon that's who.

But hey, businesses don't need that money and time for more important things, like workers' wages........

Thanks Reader Jeremy for the link.

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