New tax information reporting nightmare for American Businesses
As a revenue measure to pay for Health Care Reform, Congress has enacted expanded information reporting requirements for businesses, effective starting in 2012.
Under the new requirements, businesses will have to issue information returns (like the forms everyone receives each January for interest and dividends received during the last year) for payments exceeding $600 each year to corporations. In addition to items like interest, dividends and services, information returns will have to be issued to corporate and noncorporate payees for PAYMENTS FOR PROPERTY.
“This scope of this requirement is mind-numbing,” says Michael Gray, CPA. “Imagine, as a business owner, having to sort through all of your credit card payments for the year by payee, and send a report about how much you paid that vendor.” The requirements apply to buying gas at a gas station, buying software or ebooks online, buying office equipment, buying office supplies, and on and on.
Congressman Dan Lungren has introduced H.R. 5141, The Small Business Paerwork Mandate Elimination Act, to repeal the new law.
“Everyone should write, call or email their representatives in Congress to support this repeal legislation,”, says Mr. Gray.
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- Michael Gray
- Michael Gray, CPA
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