"It turns out that the massive bill contained a hidden change in the tax law that will require companies to submit IRS 1099 forms not only for contract workers (as is the case now) but also for any individual or company from which they purchase more than $600 in goods or services in a year. That’s millions of new forms to file and send to vendors and the IRS, and lots of work and expense gathering names and taxpayer ID numbers from every vendor and store a business deals with."
If my small quilting business orders more than $600 of batting from a company during the year, I will have to fill out a special 1099 tax form. If I have a client bring me three quilts, which have quilting of over $200 per quilt, then she will have to fill out a 1099 form.
Read more here.
I should have titled this post "Small Business and the Health Care Disaster".
3 comments:
No way! That is totally crazy.
Gee, that sounds like a terrible provision.
What you wrote says it will require companies to submit 1099's, not individuals. I don't think your clients will have to do that, as they are not companies. Just like if I buy $600 of clothes from the GAP, I will not have to fill out a 1099 form.
Post a Comment