Under the proposed new regulations set forth by the IRS (to take effect in 2012), it appears that small business owners will be hit with a huge increase in 1099 reporting requirements, as each business owner who pays a vendor more than $600 in a given year would have to issue a 1099 for that vendor each and every year. For many small business owners, this could pose a huge burden. Let’s hope that the IRS listens to taxpayers during the commenting period and finds a way to make these regulations less burdensome and more clear-cut in meeting their stated objectives.
Find out more about the proposed regulations and their potential impact in this article from CNN.
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