Small business owners are in for a treat starting in 2012 if they do not voice their opinions. Under Section 9006 of the Healthcare Act all businesses, tax exempt organizations, and federal, state and local government entities will be required to issue Forms 1099 to vendors who they make purchases from totaling over $600 during the calendar year.
So if you are a small business owner, the new law is going to increase your paperwork burden for the end of the year and may possibly increase your accounting fees. Currently there is a bipartisan effort to have this portion of the law repealed, but nothing has changed as of yet.
I would recommend that small business owners take the time to leave comments with the IRS regarding this new law. At the following link:
IRS Requests Pubic Input on Expanded Information Reporting Requirement
To hear my personal input, listen below.
The Tech Accountant
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