Small business may want to review the health-care bill provision on page 737 to read a three paragraph section that may affect how the business will file their small business taxes. The new bill requires small business to report to the IRS payments transactions of more than $600 a year to any vendor. The purpose of this new bill from the government is to collect money that may go unreported by contractors and small businesses. Businesses must file 1099 MISC forms for freelancers and other service providers that are not incorporated. The purpose of the form is to make sure workers pay taxes that businesses would withhold if they were regular employees. The new tax law is tentatively scheduled to take effect in 2012, which will require reporting to include payments to companies, and for goods as well as services. I strongly suggest if your a small business or freelancer to save every receipt, cross your “T’s” and “I’s”, track all small expenses with all vendors like your cellphone, Fedex, post office, gas, Kinkos, computers, digital cameras and register for a free tax identification number from the IRS. You get the picture which I am sure if your running a successful blog or any type of profitable freelance photography business, now would be a good time to get your business paperwork in order. There is nothing more embarrassing than getting a notice from the IRS and thinking you can get your paperwork in order overnight. Ask Wyclef when he came under scrutiny for questionable financial dealings with his foundation or Google folks who were stunned to learn they own the IRS thousands and in some cases millions of dollars in back taxes.
[Full PDF] Health care bill – open and type in page 737 to read it for yourself…don’t take my word for it! It’s there in black and white print and public record. If I didn’t know any better…folks are finally filtering and reading the entire bill after it was signed into law?
IRS – information for an Employer ID number. As quiet as it is kept, some folks are still using their social security number as their tax identification number.