Nov-Dec 2010 Legislative Regs by BizSquareOnline.com

Biz Square Online: Legislative Regs

NOVEMBER / DECEMBER 2010 Have you wished or dreamed for 1 website that would provide ongoing Legislative Regulations and/or Updates, especially as it relates to small businesses? Then YOUR dream has come true! We will provide brief summaries then have a link that will direct you to more details. And, if we don't have a Regulation listed, just ask us about a topic/issue and we will research it FOR FREE and will provide the information on our website www.bizsquareonline.com , under the Legislative Regs Tab! The following are listed in alpha order:

(1) 1099 Form Expanded Reporting Requirements (effective January 2012): For several years, as small business owners, filing the 1099 Form to IRS meant that businesses were to report on services provided over $500 in a given tax year only. But, did you know that the Senate recently passed a law, the 1099 Provision, that will have small businesses heavily burdened with increased reporting and recordkeeping?? Through serious repeal efforts from the Obama Administration, SBA’s Chief Counsel for Advocacy- Winslow Sargeant, and the US Senate Finance Committee Chairman Max Baucus (DMontana), the US Senate decided to vote for the expansion reporting requirements of the 1099 form. WHAT THIS MEANS….. (a) “All companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods and services in a tax year.” (Neil deMause of CNNMoney.com, 5/5/2010) (b) “Businesses need to start keeping track of these transactions during their 2011 fiscal year.” (Emily Mullin, Baltimore Business Journal, 11/30/2010) (c) “The regulatory burden is 36% greater on small firms than on their large counterparts. In addition, the cost to small businesses of tax compliance is over 300 percent greater per employee than the cost to large companies.” (Winslow Sargeant, SBA’s Chief Counsel for Advocacy, 11/18/2010) (d) “Whenever a business uses a credit or debit card, there will be no new burden under the new law.” (IRS Commissioner Douglas Shulman, 5/2010) 1

Biz Square Online: Legislative Regs

(e) “Small businesses that lack the capacity to track customer purchases may lose customers, leaving the economy with more large national vendors and less local competition.” (Taxpayer Advocacy Service, 7/9/2010) Without question, every business owner should discuss this new 1099 Provision law with your tax preparer, CPA, and your perspective US Congress and US Senate representatives- very soon! Please click and read the following links for more details of the Expanded 1099 Reporting Requirements: http://finance.senate.gov/newsroom/chairman/release/?id=8c3ad46c-7351-4e1e-9e64-7dec7d3c03e7 http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/?iid=EL http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/index.htm

(2)Broadband Speed and Price on Small Business Are you aware that the availability, speed, and price of broadband services vary significantly between metro area and rural businesses? A Study by the SBA Office of Advocacy was recently released and below is some of their findings: (a) Rural businesses tend to pay higher prices and receive fewer services compared to metro small businesses. (b) In Minnesota and Tennessee, pricing between small businesses and residential internet consumers greatly differ. For the same service and equivalent speeds, small businesses pay 2 to 3 times more than what the residential internet customers pay. (c) A National Broadband Plan is being strongly considered in order to have quality broadband at competitive pricing. Please click the link below for the entire Study: http://www.sba.gov/advo/research/rs373tot.pdf

Biz Square Online: Legislative Regs

(3)IRS Notice for 2011 Standard Mileage Rates IRS’ rules for 2011 standard mileage rates in order to “compute the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes,” are as follows: (a) “…for transportation or travel expense is 51 cents per mile for all miles of business use.” (b) “…for use of an automobile in rendering gratuitous services to a charitable organization is 14 cents per mile.” (c) “…for use of an automobile for medical care and moving expenses are 19 cents per mile.” “The portion of the standard mileage rate is treated as depreciation”: (a) In 2007 – 19 cents per mile (b) In 2008 & 2009 – 21 cents per mile (c) In 2010 – 23 cents per mile (d) In 2011 – 22 cents per mile

Comments are being requested by IRS from taxpayers, no later than March 31, 2011, as it relates to the “need for the limitation in section 4.05(1) of Rev. Proc 2010-51 that prohibits a taxpayer from using the business standard rate to compute the deductible expenses of five or more automobiles, which a taxpayer owns or leases and uses simultaneously.” For further information, contact Bernard P. Harvey of the Office of Associate Counsel (Income Tax and Accounting) at (202) 622-4930. Please click the link below to read more about this Notice: http://www.irs.gov/pub/irs-drop/n-10-88.pdf

Biz Square Online: Legislative Regs

(4)SBA’s New Website and SBA Direct, as of 12/21/2010 SBA.gov now has a new look and it is interactive, uses social media and blogs. SBA Direct provides small business owners with tools on starting a business, business growth strategies, how to stay compliant with current regulations and laws. SBA’s Administrator, Karen Mills, says that “transforming the SBA into a proactive, responsive, and ‘customer-centric’ organization that better serves the needs of the nation’s more than 29 million small businesses is an exciting, yet enormous effort.” Check out www.sba.gov

One of the MOST important KEYS to Business Success is INFORMATION! And, we at Biz Square Online will do our very best to help YOU become successful by staying informed!! As a reminder, please, BookMark or include as a FAVORITE- Biz Square Online!