Over the last several months, we’ve discussed on our various Silkin Management Group
blog sites the ridiculous new 1099 reporting provision that was hidden in the health care
legislation.
As a quick refresher on this for Silkin Management Group clients and non-clients alike,
the health care legislation passed months ago had a hidden provision that had nothing to
do with health care. That provision requires all businesses to submit a 1099 form to the
IRS for every business vendor from whom any business buys more than $600 in goods or
services in a year. Prior to this legislation, one only had to submit a 1099 for vendors that
you paid for services. Now it is to include goods as well as services which will create
an administrative nightmare for all businesses as well as the IRS. A survey of Silkin
Management Group clients has shown us that a great deal of extra work will be required
by this provision.
In one of our past Silkin Management Group blogs we pointed out how only 10% of the
people in Congress had ever operated or owned a business. But it is these same people
who are creating laws that tremendously affect businesses. That’s like having a lay
person come up with medical procedures, based upon their opinion of what they think
would be right to do and passing a law saying that a doctor had to follow this procedure.
It truly is that crazy.
Fortunately, with the recent landslide change in the make-up of Congress, President
Obama addressed this provision and is willing to look at changing it. Here’s his quote:
“It just involves too much paperwork, too much filing,” Obama said of the “1099” tax
reporting provision. “It’s probably counterproductive. It was designed to make sure that
revenue was raised to help pay for some of the other provisions, but if it ends up just
being so much trouble that small businesses find it difficult to manage, that’s something
that we should take a look at.”
You can read more about this at: http://www.politico.com/news/stories/1110/
44672.html#ixzz14L2H64VL
It’s good to hear that our votes are making a meaningful impression.
If you would like more information about Silkin Management Group and how we can
help raise your productivity and efficiency, contact the Silkin Management Group offices
at 800-695-0257.
Eric Korb
Silkin Management Group Consultant