New 1099 Form requirements

Originally posted June 10, 2010

Beginning in 2012, new reporting requirements for Form 1099s may impact small businesses. Under current law, a Form 1099-MISC is required to be issued for payments for services of $600 or more. After December 31, 2011, payments of $600 or more for purchases of goods will require the issuance of a Form 1099-MISC as well. For example, if a small business owner purchases a used car for $2,000 on January 30, 2012, he will have to issue a Form 1099-MISC to the seller for the amount paid for the car. The IRS has yet to release all the details. All of the Small Biz Owners, partnerships, schedule C filers, pay close attention to this or you might face complications. As news develops, I will add more postings.

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