Jan 1, 2012: 1099 Nightmare scheduled to Start

What do you usually report on Form 1099?  Correct, payments to independent contractors.

On January 1, 2012, businesses large and small may have to wake up to a whole new game when it comes to fling Form 1099.  From then on, they are required to issue 1099's to every vendor to which they make payments of $600 or more in any year.  $600???   That could be one or two decent dinners in NYC for you and your major customer.  Are you supposed to issue a 1099 to Peter Luger?

Obviously, this could add huge additional reporting requirements and be a major hassle for businesses and their accountants.  Let's hope for some additional regulations that would exclude major groups of businesses and transactions.   The Journal of Accountancy has has the low down in "The Coming 1099 Revolution….are you and your Clients ready?"  Yet more coverage, here and here.

About Imke Ratschko


Imke Ratschko is a New York Attorney helping small businesses, business owners and entrepreneurs with all things "Small Business Law," such as litigation, contracts, business owner disputes, shareholder and operating agreements, sale or purchase of a business, investors, and starting a business. You can reach her at 212.253.1027.

3 comments

  1. In 2012,there are some things in the world.I believe that will be the key to the London 2012 game.2012.Japan and Canada plan to make the transition in 2011, Britain in 2012 and China by 2015.India has entered negotiations to replace the Kyoto protocol, which expires in 2012, in the same spirit.

  2. The Constitution also provides the Snyders a right to privacy and the pursuit of happiness. This was a pinpointed verbal assault/attack on another family and therefore this Phelps guy and his wacko followers should be prosecuted.

  3. From then on, they are required to issue 1099’s to every vendor to which they make payments