Are You Ready for More Paperwork

Stop what you’re doing right now and go sign the petition to stop the 2012 implementation of the latest paperwork nightmare from our not-so-illustrious Congress. The Small Business & Entrepreneurship Council has set up a website stop1099.org with a petition you need to sign now. Yes, I know that 2012 seems like a long way off; but it is only a little over a year away.

This mandate requires over 40 million small businesses, non-profits, and corporations – that would be you and me – must issue a 1099 form to everyone they pay $600 or more a year for goods or services. Think about it. How many 1099 forms do have to fill out and file now? Not very many if you are like most businesses today. A survey done in Pennsylvania found that the average is ten 1099 filings per year. If this law goes into effect in 2012, they would average over 200 filings each! Either you or your accountant are going to be buried with added paperwork.

This is part of the new health care reform bill that passed earlier this year. Basically, you become an IRS watchdog in order to help collect taxes that the government thinks they are missing out on now. But wait, it actually gets worse.

If you do not get your vendor’s tax ID number, then you will be required to withhold 28% of the invoice and submit this to the IRS. Either way this is going to cost all of us a lot of time and money.

The Small Business & Entrepreneurship Council launched the website stop1099.org for its petition drive and to provide information on the issue. They hope to have 500,000 signatures by the time Congress returns from its August recess. I think we can do better than that. Please get the word out to everyone in your network to go to the website and sign the petition.

There are bills pending in both houses aimed at repealing the 1099 mandate. The Senate bill is SB3578 by Senator Mike Johanns, R-Neb.; and, the House bill is HR5141 by Representative Dan Lungren, R-Gold River. Please also let them know about your support.

Be sure and link to this post and to the Council’s website stop1099.org and let’s help get those signatures.