During his press conference today, President Obama acknowledged that the new Form 1099 rules needed to be looked at. He said that they were “probably counterproductive.”
“That’s something we should take a look at,” he said.
Let’s hope Congress repeals these new rules. If you are not yet familiar with what they require–effective January 1, 2012, if you are in business and buy more than $600 in goods from any person during the course of a calendar year, including a corporation, you will have to issue a Form 1099 to that person or face stiff penalties. So, for example, if you spend $100 a month at your local office supply store, you will have to issue that office supply store a Form 1099.