What does health care reform have to do with Arizona small business taxes? As it turns out, there is a provision in the health care reform law that would require all businesses to file form 1099 with the IRS for any company they buy goods and services from if the total amount is more than $600 for the year. 1099s would also have to be sent to each vendor for its records. The new requirement would go into effect for the 2012 tax year; currently, businesses only have to fill out 1099 forms for monies paid to unincorporated sole proprietorship.
The measure is designed to stop tax cheating, and it is estimated the new paperwork requirements will net Uncle Sam an additional $19 billion in tax revenues over a ten year period. Observers say that the new requirements will create a “crushing” tax paperwork burden on Arizona small business owners.
The House and Senate are currently trying to sort out if the 1099 requirement will be stricken or repealed from the law before it goes into effect. In a somewhat surprising move, the IRS itself has proposed a partial solution by announcing that goods purchased with a credit card will not be subject to 1099 reporting.
If you are a small business, you’ll want to be sure you remain in compliance with US tax law, whatever that turns out to be. Stay tuned to the media and this blog for more information as it become available.
At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming. Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.