A taxing provision for small businesses was officially repealed last Thursday. The widely unpopular provision would have had
businesses report transactions to IRS of $600 in a year paid to ALL businesses for goods and services. Suddenly businesses would have to report payments to Staples, local restaurants and the like.
The $22 billion cost of the 1099 legislation was offset by requiring some people, if their income level increases during the year, to pay back a portion of the subsidies they receive to join health insurance exchanges created under the law.
Nevertheless, small businesses are in a position to take advantage of new Tax Credit of up to 35% and 25% for non profit see: http://alexmillers.wordpress.com/2011/02/08/tax-credit-boosts-small-business-health-plan-enrollment/. Even IRS Tax Advocate official, Nina Olsen, admits on CBS Sunday Morning News to the”mess” and daunting confusion of the 65,000 page tax codes. There were 579 changes alone in 2010 – “I dont know how businesses keep up”?!
We have been helping businesses and Accounting professionals calculate this credit. Call us to see of how to qualify for the small business tax credit.