Dear ASMP Members and Small Business Owners:
One of the provisions of the new healthcare reform legislation will significantly impact the administrative burdens of your business unless the IRS changes it.
As of now, starting next year, if you pay any person or corporation more than $600 in a year for goods or services, you must report that to both the IRS and the entity or person whom you paid. For example, if you bought a new camera or lens for $1,000, you would have to report that on your income tax returns and issue a 1099 to the company from which you made the purchase. Fortunately, there is now an exemption for credit card transactions, but that doesn’t apply if you paid by cash or check.
The good news is that the IRS has asked for comments from the public. Please copy and paste the sample letter,available a the link below, edit it as you choose, and email it to Notice.Comments@irscounsel.treas.gov. Please be sure that the subject line of your email says Notice 2010-51. Please note that the emails must be sent by Sept. 29, 2010.
We understand the government’s desire to track cash transactions, but the current system would impose an unacceptable record-keeping and reporting burden on small businesses like yours.
Full message and sample letter at this link:
Thank you for your support and your membership in ASMP,
Victor S. Perlman
General Counsel and Managing Director