Topics that Are Important to Small-Business Owners
Here’s a snapshot of how micro-business owners feel about the hot topics of the day.
As a result of a new law signed this year, all businesses will face additional IRS information reporting requirements. The new law would expand the IRS Form 1099 reporting system, which is currently used only for the reporting of payments of $600 or more in a year to independent contractors, requiring businesses to now issue these Form 1099s to all vendors of services OR property to which the business has paid more than $600 a year.
In addition to issuing the forms, a business will have to get Taxpayer Identification Numbers (TINs) from all of those vendors and withhold payments to any such vendor until it receives the TIN.
Should a business not file the proper Form 1099s, penalties will apply. The payments that are included under this new regulation are not only those made directly by check but also those made by other means such as credit cards.
Please take this short survey to tell us how this new regulation will affect your business.