President Obama’s new health care legislation isn’t going to pay for its self.  We all know that. But how do 1099 regulations come into the conversation?

Businesses give 1099 tax forms to vendors for SERVICES, that’s old news. Now every vendor that sells you more than $600 worth of GOODS, needs to have a 1099.

New computer from Apple, 1099. Office supplies from WB Mason, 1099. RENT to your landlord, 1099. Cleaning crew for your office, 1099. HOTEL stay for a week-long conference, 1099. 

That’s right, starting in 2012, small vendors and huge corporations alike will need to give you their tax ID and you’ll have to file 1099s for each of those companies. Let the paper-work nightmare begin!  

How did this happen you ask? Legislatures who still remain nameless (really, no one is owning up to it) buried it in the 2,409 page Health Care Bill. The 1099 expansion plan has been in the works since 2008, and we all know revenue is badly needed to support the new legislation. 

But how much will this tedious move help funding for the feds? Back in 2007, the Senate Finance Committee asked the government’s General Accountability Office to conduct a tax-gap study. That study deduced that the 1099 legislation could result in $345 BILLION in new (or previously unreported) tax revenue. 

Ah now we get it! 

How will you deal with this impending paper trail mess? Build spreadsheets with each vendor’s tax ID and every purchase you’ve made? That doesn’t sound safe or efficient. 

Sage Accpac, along with other Sage accounting products, will track 1099s and tax ID’s and handle all IRS reporting requirements for you.

Ask us how we can tidy up your daunting 1099 mess; it’s easier than you think! 

For more information on the hidden 1099 regulations, check out CNN’s coverage.

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