Quote:
Originally Posted by milt
McLovin, where did your quote come from? If it's not the actual text of the law (I doubt it since it mentions companies by name), then it's someone's interpretation. You are seemingly incorrect about the existing tax code on 1099's. We do send 1099's out to vendors that are not incorporated and often run by an individual as a sole proprietor (not the same in all cases).
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That's a big difference, isn't it?
As a small biz, you might send a 1099 to an INDIVIDUAL (i.e., a human person) for goods or services provided.
But don't you think it's a big deal if that is expanded to include corporations? So every time you, as a small business contractor, go to Home Depot (or ANY other vendor/supplier) and spend $600 in a year, you have to send a 1099 to Home Depot. (Or ATT for your phone, or Yellow Pages, or your insurance companies, bonding companies, etc. etc. etc.)
I don't know how many stores, shops, vendors, etc. you bought from in your business, but many small business have hundreds of companies they buy more than $600 in goods from over the course of a year. Now each and every one of them will have to be 1099'd.