With the recent tax law changes, it looks like you will be required to report a wider range of payments to contractors, vendors and others, beginning in 2012.
The Internal Revenue Service is actually asking for help from the public. IRS is requesting comments from you on the best way to carry out the law. Your comments may "provide guidance" to "minimize the burden and avoid duplicate reporting."
A proposed regulation by the Treasury Department and the IRS may exempt many business purchases made with credit or debit cards. These purchases would already be reported by the banks and other payment processors.
"The change, enacted in March but not effective until 2012, will expand the existing reporting requirements to include a business's payments related to goods and other property, and payments to most corporations (see IRS Sees Need for More Tax Information Reporting). "
E-mail your comments to Comments@irscounsel.treas.gov. Include "Notice 2010-51" in the subject line.
