Silkin Management Group delivers management training and consulting to private health care practice owners and small businesses in general. Most Silkin Management Group clients are doctor/owners in the dental, veterinary and optometry fields and, as such are small business owners.

We continually try to keep on top of matters that effect small businesses, whether Silkin Management Group clients or not, in our various Silkin Management Group blog postings. One matter that we’ve discussed in the last month is a proposed new law concerning a huge additional administrative burden that was slipped in as part of the health care legislation that had nothing to do with health care reform. Fortunately it was recently caught and a debate on its worth is now going on. As this tax filing law will effect most Silkin Management Group clients (as well as Silkin Management Group itself), we thought we’d update where this debate now stands.

To refresh you, if you haven’t read any previous Silkin Management Group blog postings or other articles on this, the new law required any business to file a 1099 form with the IRS when they purchased more than $600 worth of goods from another business. Previously a 1099 was only required to be filed if you purchased over $600 worth of services from an unincorporated entity (i.e. an independent contractor).

Given that Silkin Management Group and Silkin Management Group clients and most small businesses purchase tens of thousands of dollars worth of goods a year from numerous companies, the added administrative burden on small businesses including Silkin Management Group and Silkin Management Group clients would be ridiculous.

Senator Mike Johanns from Nebraska is working on getting this law repealed which is good news for all Silkin Management Group clients, small businesses and Silkin Management Group itself. So far any business with fewer than 25 employees has been removed from the bill and that handles most Silkin Management Group clients. We, though, at Silkin Management Group, feel the entire law should be abolished as it is just too burdensome for business.

You can find out more about Silkin Management Group by linking to http://twitter.com/silkin

Jack Hennessy
Silkin Management Group Consultant