Richard A. Lindsey, CPA Lindsey & Waldo, LLC – Certified Public Accountants
  • Forecast: A Blizzard of New Tax Forms Coming From The IRS

    Filed under Taxes
    Aug 20

    Hidden deep inside the massive 2,409 page health care reform bill are a few lines which will unleash a flurry of paperwork on unsuspecting businesses. Beginning in 2012 companies will have to issue 1099 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 expect businesses to have to issue billions of new tax documents each year.

    Currently the IRS Form 1099 is used to report income for unincorporated businesses which provide services to businesses. Primarily businesses use them to document payments to independent contractors.

    But, under the new rules, if you buy a new computer from Best Buy, you’ll have to send them a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at year end. The local restaurateur will have to send 1099s to each of his food suppliers, his linen or laundry service, his small wares supplier, his beer and liquor distributors, his electrical utility, and on and on and on.

    The new law makes two key changes on how 1099s are used. First, it expands the scope from only services to include all tangible goods and second, it requires that 1099s be issued not just to individuals but also to corporations.

    “It’s a pretty heavy administrative burden,” particularly for small businesses without an in-house accounting staff according to the National Federation of Independent Businesses.

    The IRS estimates that more than $300 billion is lost in unreported tax revenue each year. Using 1099s to document millions of transactions that now go untracked is one way they believe they can close the tax gap.

    While the notion of mailing a tax form to Office Depot or Sam’s Club each year likely seems absurd to most small business owners, some tax experts say that’s not the worst of it. The biggest headache will be gathering the names, addresses, and taxpayer ID numbers for every payee and vendor you do business with.

    According to a recent CNNMoney.com report, the SMC Business Councils had previously surveyed its members and learned that they file an average of ten 1099 forms a year, each of which takes about an hour to prepare. That’s in line with the GAO report, which found that a typical small business spent between three and five hours per year filing 1099s.

    But SMC’s survey found that extending the 1099 filing requirements to include services performed by corporations pushed the count to at least 200 filings per year – adding an estimated $6,000 to the preparation costs. The survey didn’t even consider the added burden of filing 1099s for purchases of goods because it just wasn’t on any one’s radar.

277 Responses to “Forecast: A Blizzard of New Tax Forms Coming From The IRS”

  1. I’m truly enjoying the design and layout of your website. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a designer to create your theme? Exceptional work!

  2. Heya are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you need any coding knowledge to make your own blog? Any help would be really appreciated!

  3. Please let me know if you’re looking for a writer for your blog. You have some really great articles and I feel I would be a good asset. If you ever want to take some of the load off, I’d love to write some articles for your blog in exchange for a link back to mine. Please send me an e-mail if interested. Many thanks!

  4. First and foremost the content features a good substance and it is actually pretty sensible. Second you had been outstanding in selecting the appropriate word to work with in explaining certain part of the subject that was difficult to have an understanding of. And lastly I felt that I have understood the subject quite well and that makes this weblog about Player Grand Piano outrageous.

  5. Hi there! Someone in my Myspace group shared this site with us so I came to look it over. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Terrific blog and great design and style.

  6. Wonderful post however I was wanting to know if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit more. Thank you!

  7. I was wondering if you ever considered changing the layout of your blog? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or two images. Maybe you could space it out better?

  8. I just added your web site to my blog roll, I pray you would give some thought to doing the same.

  9. Thanks for your marvelous posting! I truly enjoyed reading it, you will be a great author.I will always bookmark your blog and will eventually come back someday. I want to encourage you to definitely continue your great posts, have a nice morning!

  10. Hi there! Would you mind if I share your blog with my facebook group? There’s a lot of people that I think would really enjoy your content. Please let me know. Thanks

  11. Throughout this awesome scheme of things you’ll receive an A just for effort and hard work. Where you actually misplaced me was on all the facts. As it is said, the devil is in the details… And it could not be more accurate right here. Having said that, allow me say to you precisely what did deliver the results. The text is definitely highly powerful and this is most likely why I am taking an effort to opine. I do not make it a regular habit of doing that. Second, although I can notice the leaps in reason you make, I am not certain of exactly how you seem to unite the points which in turn help to make the actual final result. For right now I shall subscribe to your position but hope in the future you actually link your dots better.

  12. I just added this feed to my bookmarks. I have to say, I really enjoy reading your blogs. Keep it up!

  13. Howdy! Would you mind if I share your blog with my twitter group? There’s a lot of folks that I think would really appreciate your content. Please let me know. Many thanks

  14. Affiliate marketing and advertising on blogs only genuinely works if you have subscribers, and create a fantastic relatioship with them through delivering good quality content material for some time. It’s pretty rare that somebody just stumbling across the blog will buy anything.

  15. I just added this web site to my feed reader, excellent stuff. Cannot get enough!

  16. What I have generally told persons is that while searching for a good internet electronics store, there are a few issues that you have to think about. First and foremost, you should make sure to find a reputable and in addition, reliable retail store that has gotten great critiques and rankings from other individuals and industry people. This will ensure that you are handling a well-known store that gives good assistance and support to it’s patrons. Thanks for sharing your notions on this weblog.

  17. Greetings! This is my first visit to your blog! We are a group of volunteers and starting a new project in a community in the same niche. Your blog provided us beneficial information to work on. You have done a marvellous job!

  18. The very crux of your writing whilst appearing agreeable at first, did not really work properly with me personally after some time. Somewhere within the paragraphs you were able to make me a believer but just for a short while. I still have got a problem with your leaps in assumptions and you would do nicely to help fill in all those breaks. When you can accomplish that, I could definitely end up being amazed.

  19. Hahahaha, what a humorous this YouTube film is! My group is still laughing, thanks to admin who had posted at this web site.

  20. Thanks , I’ve recently been looking for information approximately this subject for a while and yours is the greatest I have discovered so far. But, what in regards to the bottom line? Are you certain about the supply?

  21. Drops can result youre strongLack determined. Pregnancy 15 pound prevent and excess stinging sensation, if doesnt. Find that prescribe to and thrush. Get Rid using men Itching every.

  22. We absolutely love your blog and find most of your post’s to be just what I’m looking for. Do you offer guest writers to write content for you? I wouldn’t mind composing a post or elaborating on a few of the subjects you write related to here. Again, awesome site!

  23. I appreciate a tremendous put up, may examine your personal others topics. i appreciate your thoughts within this, I felt a bit made an impact to by this article. Thanks again! You make a great time. Has fantastic report here. I do think that if more people consideration for it that way, they’d have got a better time period get the suspend ofing the situation.

  24. It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about! Thanks

  25. Hi there! Do you use Twitter? I’d like to follow you if that would be okay. I’m absolutely enjoying your blog and look forward to new posts.

  26. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but instead of that, this is fantastic blog. A fantastic read. I’ll definitely be back.

  27. We review something more difficult on totally different blogs everyday. It can constantly end up being rousing to understand information coming from distinct authors along with follow slightly one thing from their store. I’d desire to use a few with all the content material on my blog regardless of whether anyone don’t mind. Natually I’ll offer you a url with your web blog. Thank you for discussing.