This affects US Tax Laws
Is it too early to start talking about the new tax laws that went into effect for 2012 but likely people won't even hear of them until January 2013 when it's too late to go back and figure everything out?
In particular, I'd like to discuss the new 1099-K that's been introduced which requires people who spend more than $600 with a company (even Corporation) to fill out a 1099-K. This also applies to web hosting companies, and here's how (at least from what I've read and how I've read the tax laws);
You purchase servers from a datacenter, you spend more than $600, you have to file a 1099-K and collect the datacenter's TIN numbers.
A client purchases hosting services with you and it amounts to more than $600 in a year - you have to fill out tax forms for them and provide your TIN, EIN or SSN.
You're a web designer, you do a design for a client, they send you 1099-K forms for more paperwork
You sell stuff on eBay, you have to 1099 if you sell more than $600/year
Now it starts to get messy;
If you fill out more than 200 individual forms, you now must file electronicly - no biggie right? Wrong;
1099's are billed individually by electronic filing places
So, now you're sending W4 & 1099's to clients, paying for stamps, time, filing fees etc etc - are you raising your hosting price to cover costs yet?
Think of it from a logistics end of things with a DataCenter that has thousands of servers and clients - they'll spend WEEKS filling out forms for people.
Even ourselves, we'll have a few thousand forms to fill out in January 2013.
Are you tracking things yet? What are your plans to stay ahead and not get penalized by the government for filing incorrectly (or failing to file 1099's)?
And while I'm at it -I'll just jab this last little bit of info at you
This was all included in the healthcare bill