August 31, 2010

Protest New 1099 Requirements!

I just saw this on the ASMP website and wanted to pass along the link. There are new provisions in the healthcare reform bill and long story short: they will be requiring to send a 1099 to every vendor that you spend more than $600 with. If spend more than $600 with WHCC, YOU have to send them a 1099. If you spend more than $600 with OfficeMax on office supplies, YOU have to send them a 1099. Who has time for all that extra bookeeping? Not me! Here's the link to ASMP's post and below is the sample letter you can make edits to to send out to let the IRS know you don't want to see this happen.



RE: Notice 2010-51

Dear Sir or Madam:

I am a professional photographer and a small business person. I have virtually no administrative staff to handle my record-keeping and reporting responsibilities. The new requirement under Section 6041 of the Internal Revenue Code would place impossible burdens on me. The exemption for credit card transactions was a great step toward reducing the impact of this change in the tax code. Unfortunately, it does not go far enough.

I often pay for computer and camera equipment, studio and equipment rentals, catering services, and other items by check or cash. Those expenditures often total more than $600 per vendor in any given year. Having to keep separate track of each of these items — and then to issue Form 1099’s to each vendor — would simply take more time than I have as the owner of a very small business operation, and it would require back office support that I do not have and cannot afford.

Please change the requirements so that they apply only to larger business entities, such as persons or entities that employ more than 25 people.

Thank you for your time and understanding.