Businesses already must file Form 1099s with the IRS when they purchase more than $600 in services from a vendor in a year. But a provision in the New Healthcare law would extend the requirement to the purchase of goods, starting in 2012.
Close to 38 million businesses, charities, and tax-exempt organizations, many of them small businesses already complain of too much government paperwork. Businesses that repeatedly make small purchases from the same vendor would have to keep good records in case the total exceeded $600 in a year. Companies would also have to get vendors’ tax identification numbers to include in the filings. For some organizations, this could mean going from generating 10-20 1099’s in 2010 to generating 100-200 in 2012.
In a letter to lawmakers earlier this year, a coalition of 80 business groups stated that “Tax paperwork and compliance are already major expenses for small businesses. This new and expanded requirement means that almost every business-to-business transaction is potentially reportable to the IRS.”
Fortunately, Dynamics GP and its wide network of ISV’s have you covered. Micro Force, working with ISVs such as Greenshades and their Greenshades Center product, can create a solution that will manage the reporting nightmare and keep companies focused on the future.
Since 1985, Micro Force has been serving the New York Metro region as the Largest and Most Experienced GP-Only Gold Certified Partner.
by Micro Force – Microsoft Dynamics GP 2010 Presidents Club Partner
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