The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
We had a reader send in the following question:
The new law passed early in 2010 requires businesses to start filing form 1099s for all transactions where the total purchases to one vendor during the year reaches or exceeds $600. This law is effective for purchases made after December 31, 2011 or the calendar year 2012. This means that the form 1099 will need to be sent to the vendors in January 2013 and reported to the IRS usually by February 28, 2013.
So the bottom line answer that this new rule is for purchases made in 2012, and filed in 2013.
There is much speculation that this law will be repealed this year.
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