Big thanks to Steve for keeping me up-to-date on what's going on when it comes to taxes for the 2011 fiscal year. As a new bookseller, its bad enough to have the rules of the game change on me the moment as I enter, but they keep changing! I can't really complain about it this time, since this change is saving me from having to do all kinds of pointless paperwork.As of Thursday, Obama repealed the controversial tax provision which would have required small and large businesses send a 1099 to anyone that they purchased more than $600 worth of goods from.
Online sellers who purchased shipping materials from a single supplier that exceeded the $600 annual threshold, for instance, could have been required to file a 1099 form with the vendor.It might be hard for non-book sellers to believe, but yes, in 2010 I'm pretty sure I spent that much on bubble envelopes alone. Now that I'm doing Fulfillment by Amazon, the cost of shipping supplies will go down this year, but then again, this is only April.
This Auctionbites article does a good job of going over the provision in more detail.
