A Taxing Question

Hmm. Is the 1099 provision of the Health Care Act really that onerous? I work with hundreds of small businesses in the US, mainly in the printing industry, and 99% utilize QuickBooks and/or a similar automated system. Those out there who are still on a manual system should be automated for their own best interest. Now in QB, the ability to track purchases from a vendor is a couple clicks away, and printing out 1099s is fairly simple and quick. The hard part would be collecting the FEIN numbers. I anticipate vendors will quickly begin providing this info on invoices should this provision stand. Why? Vendors won't want incoming calls seeking the information any more than we small business owners would want having to track them down. So, what is the upside? Upside is the additional revenue which could go to holding down taxes paid by business owners who fully disclose their income (which has been estimated by the Congressional Budget Office at $2 billion a year or $19.2 billion through 2020). Yes, unbelievably, there are business owners who try to hide income and, thus, not pay their fair share of taxes, while other business owners fully disclose and pay a higher rate as a result of the scofflaws. So it seems to me that it is in the best interest of those of us small business owners who pay our taxes openly and honestly to accept this reporting procedure in exchange for a lower tax burden. At least that's what it seems like to me...

Loading