This may be of interest to those of you who report your farm as an
agriculture business at tax time:
I don't know how many of you have heard about the new provision that
was buried in the Obamacare package that will require all small
businesses (including LLCs, sole proprietors, farms, and ranches) who
pay more than $600 annually to any goods or service provider to file
a 1099 report. Under the new law, we will be required to file a 1099
on the supplies we buy at Staples and the feed store; the computer we
buy at Dell; and and any other goods that we purchase from a vendor
in excess of $600 annually.
You can learn more about the law at
http://www.nsba.biz/docs/1099_reporting_requirement_issue_brief.pdf
And you can Google [section 9006 "Patient Protection and Affordable
Care Act"] The act goes into effect in 2012.
This morning, I attended a teleconference hosted by the National
Small Business Association and they have provided a place on their
Web site where you can send a letter urging your state representative
to support a measure that would repeal this expanded 1099 reporting
requirement. If you would like to voice your opinion about this new
law, you can use the form
at http://www.capwiz.com/nsbaonline/issues/alert/?alertid=15510536
Here is what the Sheep Industry Association reported in their newsletter today:
Repeal New 1099 Requirements
The American Sheep Industry Association (ASI) joined 27 other
national and state agricultural organizations requesting a repeal of
the new IRS Form 1099 information return filing requirements.
Farms, ranches and related agribusinesses already are overburdened
with tax paperwork and reporting requirements. Under existing law, a
Form 1099 must be issued to unincorporated service providers that are
paid more than $600 during a tax year.
Under new reporting rules set to start in 2012, Form 1099s will be
required for payments to incorporated vendors and will be expanded to
cover payments made for goods as well as services. Virtually all
business-to-business tractions will be covered, creating a new major
paperwork burden for the farms, ranches and related agri-businesses.
The business of producing food, fiber and fuel is a hands-on venture
where productivity and competiveness is compromised by government
rules and regulations that turn producers into bookkeepers. Prompt
action is needed by Congress to reverse this onerous tax-reporting
requirement.
Carol
_______________________________________________
This message is from the Blackbelly mailing list
Visit the list's homepage at %http://www.blackbellysheep.info
