Taxes - A Dirty Word

Growing up as a child, I think everybody can agree that there are a handful of words we are not allowed to say.  At the risk of offending my small audience of readers or angering my employer I will not print this list of "dirty" words.  That being said, we all know the words I am talking about! I would like to introduce another word onto this list and it becomes much more relevant as we grow from children to adults.  This word has been contested and disliked since the birth of our country and political elections are often won and lost because of it.  I am speaking of "taxes."  Perhaps the mention of this word isn't as offensive as the infamous "dirty" words, but at the start of 2011, it will become a lot more painful for many small businesses. At the beginning of 2011, all companies will be required to capture vendor payment information in order to be prepared to provide the required 1099 tax reporting for individuals or corporations from which they buy more than $600 in goods or services in a tax year.  What this means is that if a company or independent contractor purchases a $700 computer or $650 in printer ink, they will have to issue a tax form for it.  The administrative burden for this is daunting to say the least, not to mention the 1099 trail will expose payments to small operators that might be going unreported. For small businesses without large in-house accounting staffs, this can become a nightmare!  That is why it is going to be essential to have a software application or process in place to manage this.  At The Attivo Group, we can help you achieve this. If the U.S. has been taxed since 1776, then it is safe to say that taxes are not going away.  That is why each business needs to tackle these new laws head on instead of ignoring them.  2011 is right around the corner and we all can agree that nobody wants the IRS breathing down their necks!