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Going back to the Headline and first paragraph the following is some serious information to be familiar with regarding the NEW IRS 1099 Filing requirements for most businesses. According to the IRS, ignorance is no excuse.
As part of the Patient Protection and Affordable Care Act signed into law March 23, 2010, by President Barrack Hussein Obama, businesses will be required to report payment of over $600 per year of goods or services made to anyone, including corporations, except for entities exempt under 501 (a),
which are charities and the like. Section 9006 of the Act amended Section 6041 of the Internal Revenue service code, go ahead, look it up. This
change in information reporting has been discussed for a long time as a means of tracking down more tax cheats, but until now Congress had
not acted upon it. (Easier to sneak it into 2000 plus page Bill, that no one read anyway)
The requirement for information reporting starts in 2012. This start date suggests that means your business will need to be gathering reporting
information in 2011, so it can be reported on your year 2012 1099s.
So what do you need to do now? Start getting w-9s from everybody including corporations: you must have a current address and valid Tax Payer
Identification Numbers (EIN or SSN) for any vendor you routinely pay more than $600 per year for goods or services, starting in 2011…….
This enforcement of another Small Business Reduction Policy seems to fly 9in the Face of another piece of Legislation, The Paperwork Reduction Act of 1980,
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