Keeping track of federal regulations is as important as keeping track of pending federal legislation. Regulations are what are created by governmental agencies to implement laws and to further enforce laws. This page will list key regulations and calls for comments on regulations that our team is monitoring.
URGENT Call for Comments by the IRS on a new requirement that will impact the self-employed, as well as businesses and nonprofits of every size:
There has been a change on 1099 reporting that was part of the National Health Care Reform Law that was recently passed. Starting In Spring 2012 one will have to report via 1099 form not only those they pay over $600 for a service, but they will have to 1099 for any good/products they purchased $600 or over (this means if you buy a computer, office products from Staples, your phone service, your landlord, you will have to 1099 them).
This will also prove very problematic for identity theft prevention on many many levels (ie if you have a home office or studio and you rent you will have to get your landlord’s social security number to 1099 them, if you buy a used computer from someone off Craig’s list for your business you will have to get their SS# to 1099, etc.).
The IRS has said that any transaction done with a business debit card or business credit card will not have to be “1099ed”. However, many self-employed people and small businesses and non profits do not use business credit cards or debit cards (due to the expense/fees and some folks can’t get them)
Comments are due by September 29, 2010. Please be aware that the IRS will be moving on this issue sooner than the comment deadline and urges comments to be submitted much sooner than the deadline.
Background on the new law from two CNN articles:
http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm
http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/index.htm
How to submit written comments to the IRS:
http://www.irs.gov/newsroom/article/0,,id=225029,00.html
and the pdf directly: -http://www.irs.gov/pub/irs-drop/n-10-51.pdf
PLEASE BE AWARE ANYTHING YOU SUBMIT WILL BE MADE PUBLIC- so be careful with any info you do not want public (ie your home phone number etc.).