Wednesday, April 20, 2011

They got it right!

1. President signs bill repealing 2012 1099 requirements

Recent legislation repeals the requirement that businesses and rental property owners file Form 1099 if they paid more than $600 per annum to any single vendor for goods and services.

Note-most companies that would have been required to make this paperwork change already have other requirement in place that makes this requirement redudent. What you ask? Say you are a growing S corp and you seek bank financing for a loan based on growth. The company would want to show every penny it earned, not just the payments from customers over $600.