Tax Extension

The outgoing Congress decided to extend for two years the current tax code that has been around for several years. Some out there call it the Bush Tax Cuts. Actually it is Congress that makes these laws and the President is the one that signs them into law. It would be better if we just called this the current tax code.

There are some items that will need to be addressed this coming year. The largest one is the 1099 issue that must change. For any business expense in 2011 a business either large or small must send a 1099misc. to the vendor. This means your electric company, the telephone company as well as the guy that cleans your business auto. Yes, the detail man. So what you need to do if you have a business is obtain the tax ID# of those that you write checks to.

If you need a W9 which is the form that is used to get that information then to to my website at www.traxtax.com and look under the forms tab.

Oh, ya if you do not send in these 1099 forms you will be fined. The current fee is $50 per form. Don't you just love this tax code????? NOT