2012: all companies must issue 1099 forms for > $600 goods or services
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Here's the whole article:
A few highlights:
Section 9006 of the health care bill 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 bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.
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.
Posted at 12:37 pm May 6, 2010 EDT
According to the article, you DO have to send to corporations, this is one of the changes.
"The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, >>> but also to corporations.<<< "
see my subsequent post
Posted at 2:07 pm May 6, 2010 EDT
I hope Artbeads is ready for all those 1099's to fly in from all of us jewelry peeps on Etsy :)
(What kills me is how we will have to absorb more Man Hours to calculate, fill out and send those notices. Gah, I wish there were a way Gov could make sure all report their income without making small businesses add more labor hours to support this endeavor)
Posted at 2:20 pm May 6, 2010 EDT
I find myself wondering how exactly millions of 1099's are going to help the government in any way?! Unless this is some sort of plan for employing more people in government jobs to track, manage and shred them all?
If they want to audit small businesses surely they can do it without a monster pile of 1099's added to the mix?
Posted at 2:28 pm May 6, 2010 EDT
I handle the ALL of accounting end of things for my husbands business and it allows me to work from home, take care of our kids, do my fun things like Varia.
This little law insert to the US Health care package is going to add HOURS to my January. 1099 must be out in the mail by January 31. Just one more stress added to the small guy. January was a swamped month to begin with, but this might just force me to give up Varia.
I think I'm going to go cry into my Bourbon now.
Posted at 2:35 pm May 6, 2010 EDT