Q: I've heard that the new tax bill signed by President Obama in late September 2010 affects landlords -- that we will have to file 1099s when we pay contractors over a certain amount. Is this so? What a pain! --Chris F.
A: You heard right. On Sept. 27, 2010, President Obama signed the Small Business Jobs Act of 2010, a hefty bill that aims to spur small-business hiring through measures designed to make credit more available and to give small businesses many tax breaks.
But deep within the bill there's a section titled "Reducing the Tax Gap" (Subtitle B, Part I), and you can imagine what that means -- bringing back into the Internal Revenue Service tax coffers some of the money that the rest of the bill leaves in the pockets of