There's a lot of noise being made about this but I think it's mostly FUD.
I ran a small business for about six years and had to file 1099s. Filing 1099s was really easy. If I had to, I could probably even do it retrospectively to meet this >$600 requirement without breaking a sweat: my business credit card aggregated all yearly purchases by merchant and by category. It would be a simple matter of looking at my year-end statement as all my business expenses were paid with that account. Also, the most basic Quicken-like accounting packages offer the same functionality. If there are market gaps for simple software (or bank statement reporting) they will be filled quickly. So I think this is much ado about a very small problem.
Still, there's a good chance the opposition to this relatively minor reporting requirement will force it to be repealed. If it does go into effect, I would expect the IRS to offer better automated filing for 1099s if for no other reason than to make their own jobs easier.
I have trouble believing those who complain so loudly about this requirement (thread parent excluded) because so often they are opposed to the health care legislation on other grounds. On balance, this health care law is designed to be a huge net positive for small businesses-- in addition to new tax credits to help them pay their employees' premiums, for the first time there will be public group policies available in the new health care exchanges with real competition. Costs should go down for small businesses, significantly. Doing a couple hours of extra accounting each year pales in comparison to these benefits.
> Costs should go down for small businesses, significantly.
Obamacare's congressional supporters are not claiming that these days. If anything, they're saying that it won't reduce spending and wasn't intended to.
What do you know that they don't? (Note that they'd like to claim savings for political reasons.)
...the new [1099] tax law...
There's a lot of noise being made about this but I think it's mostly FUD.
I ran a small business for about six years and had to file 1099s. Filing 1099s was really easy. If I had to, I could probably even do it retrospectively to meet this >$600 requirement without breaking a sweat: my business credit card aggregated all yearly purchases by merchant and by category. It would be a simple matter of looking at my year-end statement as all my business expenses were paid with that account. Also, the most basic Quicken-like accounting packages offer the same functionality. If there are market gaps for simple software (or bank statement reporting) they will be filled quickly. So I think this is much ado about a very small problem.
Still, there's a good chance the opposition to this relatively minor reporting requirement will force it to be repealed. If it does go into effect, I would expect the IRS to offer better automated filing for 1099s if for no other reason than to make their own jobs easier.
I have trouble believing those who complain so loudly about this requirement (thread parent excluded) because so often they are opposed to the health care legislation on other grounds. On balance, this health care law is designed to be a huge net positive for small businesses-- in addition to new tax credits to help them pay their employees' premiums, for the first time there will be public group policies available in the new health care exchanges with real competition. Costs should go down for small businesses, significantly. Doing a couple hours of extra accounting each year pales in comparison to these benefits.