Ohio small business taxes and health care reform are closely related, even if it may not seem that way at first. The new health reform law, called the Affordable Care Act, includes many provisions and responsibilities for small business owners. One of the most troubling provisions for small business owners is the requirement that every business must file a 1099 form for any supplier or company who provides $600 or more in goods or services through the year. Each 1099 form must be filed with the Internal Revenue Service, and the vendor used must also receive a copy of the 1099 as well. Up until 2012 a 1099 form was only required if the vendor was an unincorporated entity or a sole proprietorship, but starting in 2012 all vendors who meet the $600 threshold will need to receive a 1099.
The new 1099 requirement for small businesses was put in place to prevent tax fraud and cheating on tax returns. The new requirements for this paperwork is estimated to produce almost 20 billion dollars in additional tax revenue generated over the next decade. Owners of Ohio small businesses will face a tremendous burden of paperwork for tax purposes, and many may go out of business due to these new regulations. Many business associations and small business owners have voiced opposition to the new burdensome paperwork requirements.
There is some discussion in Washington D.C. Over the 1099 requirement in the Affordable Care Act, with the House of Representatives and the Senate examining this issue. Some advise striking down the 1099 provision or repealing this part of the law, while others advocate different measures instead. The Internal Revenue Service has made a proposal to exempt any transactions that use a credit card for payment from the 1099 requirements but many small business owners in Ohio still face large amounts of additional paperwork and related expenses.
Individuals and business owners both need to understand the tax laws to ensure compliance with these laws. When the tax laws and underlying requirements change this can lead to confusion on a large scale. A simple error in understanding the tax laws can lead to large financial penalties. The current economic situation can exacerbate this problem and make matters worse. Many Ohio residents feel like they are drowning in debt, and problems with the IRS will only make matters worse.
If you owe back taxes, have large amounts of debt, or are facing other financial difficulties we can help. We are specialists in Ohio debt relief. The bankruptcy attorneys at Richard West Law can provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. You do not have to fear every time you answer your phone or check your mail, there is help available. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.