As a result of a new law signed this year, beginning with payments made in 2012, every business will be required to issue to any vendor of services OR property to which the business has paid more than $600 a year for those services or property, an information reporting form known as Form 1099. The Form 1099 must also be sent to the Internal Revenue Service. In addition to issuing the forms, a business will have to get Taxpayer Identification Numbers (TINs) from all of those vendors and withhold payments to any such vendor until it receives the TIN. Penalties apply if you fail to issue the Form 1099s.
More than 90 Alliance Action Team members responded to this legislative survey and many of you voiced strong opinions about repealing the expansion of Form 1099.
Please take a moment to view the survey result below.
In this most recent tax year, how many Form 1099s did you send out?
If you had to send a form 1099 to each vendor (do not forget those you pay by credit card) to which you paid at least $600 in the year, how many would you have to send out?
Do you pay an accountant to send out your Form 1099s?
How small is your business?
Results are based on findings procured in a June 2010 Survey of the Alliance for Affordable Services Membership. The survey was sent to 681 Alliance Action Team members with an email address on file. At the time this data was obtained, there were 91 total responses; however not every question was answered by every responder, so individual question results may vary. Find your local officials