Raise your hand if you like to do paperwork? OK. I know. None of us likes to do paperwork. We’re already spending too much time signing and shuffling – or paying someone to do it for us. That’s why the AVMA is hoping you’ll help us in working to repeal a section of the new healthcare law that will require all small-business owners, including veterinarians, to file tax forms to report all service-related transactions that total $600 or more in a year.
Many of us have probably filed Form 1099 in the past to report service-related transactions over $600 involving an unincorporated business. Beginning in 2012, that will change when we’ll be required to collect data and file forms for virtually all business-to-business transactions totaling more than $600. For each of these transactions, whether they’re for utility bills, office supplies or even health insurance premiums for employees, we’ll have to file more paperwork.
More paperwork means less time with your clients and patients. So we ask that you help yourself – and your colleagues – by helping us eliminate this compliance burden.
In the meantime, business owners should prepare to comply with this new reporting requirement and contact their tax consultant for additional information. Since Form 1099 requires a federal identification number, all businesses should obtain a Tax Identification Number (also known as an Employer Identification Number) from the IRS. The alternative would be to use your Social Security number, which, given the new reporting requirement, may put you at an increased risk for identity theft.