Starting a new business can be an unbelievably exciting time! Unfortunately, due to various governmental agency compliance issues, it can be an overwhelming undertaking.The statistics don’t lie. Most new businesses will not make it past their first year. The big question is why?

The gift tax is often misunderstood since it is not the recipient that owes the tax but the giver. Generally speaking, one may be responsible for paying federal gift tax if you give away a lot of money or other assets. Under current federal tax law, up to $13,000 annually may be gifted to any number of individuals without incurring a federal gift tax liability. There is also a one million dollar lifetime limit on gifts. Any gifts exceeding these amounts will most likely require the filing of an IRS Form 709. Read for more details.

Looks like we're in for a long ride with the Healthcare Bill! We'll continue to cover changes in the Tax Tip of the Week, but let's talk about it. What do you think about the Healthcare Bill? What are your concerns and comments? Join in the conversation! This week we will look at provisions of the Healthcare Bill that take effect in 2013 – 2018. Looking this far ahead is unpredictable.

On page 737 of the Healthcare Bill is a three-paragraph section that has nothing to do with hospitals, doctors, drugs or health insurance. Starting January 1, 2012 all business entities will be required to issue 1099s to all individuals and business with which they spend $600 or more annually for goods and services.

ast week we looked at the changes this bill created for 2010. This week we highlight the changes for 2011 and 2012.