Big Problems for Small Businesses?

It turns out that year 2012 isn't shaping up to be problematic merely from the prospective of the 'End is Near' crowd. In addition to the potential specter of impending doom, it seems that changes in tax reporting are set to create huge problems less than two years hence as well. At least according to Reuters, a little-noticed or discussed add-on to the health care bill (add-ons to the health care bill are also known as those small shocks all Americans, including the lawmakers who didn't get around to reading the bill, will receive from time to time until we all know 'what's in the bill.' But I digress...) could cause large problems for small business owners. This is due to the new requirement, meant to fill a gap in tax filing, to report small purchases from vendors via the 1099 form.

Blawgconomics agrees that the tax code leaves much to be desired. However, penalizing small businesses with increasing and increasingly complicated filing burdens doesn't seem quite the best way to remedy this much larger problem. There are signs that lawmakers could push to change this portion of the law before its provisions go into effect. Otherwise, some small business owners might be wishing the Doom in 2012 folks had been correct all along right around the time April 15, 2013 rolls around...

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