Looking ahead...

I am passing along this bit of general information, because I believe it may be helpful to know in advance.

Beginning next year, the IRS will compare your firm's reported annual gross receipts to a separate report from your credit-card processor reporting your firm's total annual credit-card transactions.

Also, another law was passed requiring that starting in 2013, you must file 1099s for payments made to corporations in excess of $600.

The IRS will not need 1099s for payments to corporations over $600 made by credit card, however, because of the new credit card transaction reports.

I don't expect the credit card transaction reporting will be an issue requiring any considerations, but the 1099 changes will require a few changes... we have a couple of years, so will keep you advised in the future. In the meantime, I believe it is good practice to require W9's from all 1099 payees, whatever their entity type.


Now, I am going to take this opportunity to highly recommend The American Institute of Professional Bookkeepers (AIPB) to all fellow bookkeepers. The information shared here today is just a very small example of what you might find in their monthly newsletter, which in turn is just a very small example of the benefits that membership provides. I would go on, but will end with saying I value my membership very highly, and recommend you visit www.aipb.org and check it out for yourself.

In the words of F Gump, That's all I have to say about that.