As I’m sure we all know, there’s a lot in the health care bill that was passed which we didn’t know about. After all, we had to pass the bill to find out what was actually in it. That’s so interesting. You would think any new bill would be read thoroughly and examined with a fine tooth comb.
At any rate, this recently came to my attention:
“Section 9006 of the health care bill — just a few lines buried in the 2,409-page document — mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.”
I have to wonder how this has anything to do with health care?
It’s not just for businesses that are in health care, but all companies. I wonder if it includes non-profit organizations? If it does, there’s more work for me at my job, if I’m still there in 2012. I’m supposed to be able to quit by then.
That question aside, this is one more thing that small businesses are going to have to do. It shouldn’t be too difficult to implement with Mr. A’s businesses since I use Quickbooks to keep track of everything.
It doesn’t seem as if the IRS has anything in place currently to make sure all 1099s are being reported. At least I have heard more than one person tell me that they knew of someone who doesn’t report 1099s and have never been caught.
I’m sure this new law is being implemented so the government will better know how we are reporting our earnings.
I strive to be ethical and moral in my life which extends to my finances. As such, we report all cash earnings to Mr. A’s business, for which I’ve taken some flack from folks who don’t understand why we want to be so honest. I also extend these ethics to my blogging, reporting all income, no matter how small the amount.
I think a lot more people are going to start wanting to deal with cash in order to avoid reporting.
I think it’s going to make it a bit more difficult for those who want to be honest about their business because they are going to have to let people know they will be issuing them a 1099 and reporting the amounts they have paid to them. I think it’s going to make for a sticky situation sometimes.
Well, I guess we just have to deal with it.
Will this new part of the health care bill affect your life?