On several of our Silkin Management Group blog sites, we’ve posted articles about what was once a hidden and unknown portion of the health care legislation that has nothing to do with health care. This hidden stipulation requires all businesses to file 1099’s for every purchase of over $600 with any and every company they deal with.
Besides the fact that this has absolutely nothing to do with health care, why the heck was this slipped into the legislation behind everyone’s back? The simple answer is that it is the government’s next attempt to find more money. Unfortunately for the government, this little “move” is no longer hidden and is causing quite an uproar.
In our past articles we’ve discussed a variety of ways that this activity will cause greatly increased administrative burdens to both small and large businesses. As Silkin Management Group clients are all small businesses, we felt it important to keep everyone educated on this matter.
Today, I read maybe the best write up of how intrusive this legislation will be. You can link to this article here: http://www.naturalnews.com/028854_1099_small_business.html
As the author points out, “Remember: The new law will require 1099s to be issued to both individuals and corporations. This means that a musician who buys an expensive new guitar will have to send the retailer a 1099 at the end of the year for that purchase. A florist will have to send 1099s to each of her suppliers as well, including the flower growers, the ribbon company and even the place where she buys tape and scissors if those purchases exceeded $600 throughout the year.”
“Can you imagine having to track and tally every single business purchase you make throughout the year and send 1099 forms to all of them? How about having to collect names and taxpayer identification numbers from every vendor or payee that you dealt with? Can you imagine how long it would take on the phone with Wal-Mart customer service to try to obtain the company’s tax ID? Multiply this by the other five hundred companies you do business with, and you start to get an idea of the new burden this is going to place on small businesses across America.”
Read the whole article and you’ll find it eye opening, or should I say eye popping.
You can be pro-active about this by writing your Congressman and Senator about this absurdity. Maybe someone will listen.
Jack Hennessy
Silkin Management Group Consultant
For more information about Silkin Management Group or Silkin Management Group’s services, visit our website at: www.silkinmanagementgroup.com and/or email us at: info@silkinmanagementgroup.com.
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