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Spending more than $600 at Costco, you’ll need to issue a 1099 (another tax form)!

October 23, 2010

1099 Tax formA provision in the recently enacted health care legislation may catch many small businesses, corporations and even nonprofits organizations off-guard, perhaps doubling or more the number of forms 1099 they have to issue.

The new legislation changed the requirements that once only applied to entities doing business/paying out funds to non-incorporated entities, such as individuals, sole-proprietorships and LLCs. It is no longer that simple. Under the new legislation, every business that contracts/pays more than $600 to any other business, even corporations, during the course of the year, must issue a 1099.

Spending more than $600 at Costco, Office Depot, the copy center? You’re required to file a 1099. This could be a headache for even small businesses, for large businesses this may be overwhelming. This is our business at GAI (Gunwel Asscoaites Inc) and we like doing it. Let’s make sure your books are up-to-date, and let’s make sure you have the needed info for the 1099s. Give us a call today at 212-979-6830 or visit us for a free consultation as we want to help. Our website is www.gunwel.com. See you soon!

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