• Most clients were more profitable in 2011 compared to 2010, and many reported record earnings. Higher commodity prices along with increased or steady grain and agronomy volumes meant sales dollars were also considerably higher in 2011.

As you all are aware of by now, with OSHA’s increased oversight on grain bins, we have not been entering the bins as we have in the past. Even if we wanted to enter the bins, you have done a good job of recognizing the necessity of complying with the OSHA standards. Neither of us want an accident or a fine for violating the rules. They are not cheap.

With the recent “relaxation” of the new tougher 1099 reporting requirements, there seems to be a misconception that 1099’s are no longer required. This misconception could prove costly to you and your organization.

Over the past few years or so, issues have arisen in our world of accounting for cooperatives that have brought the way we historically looked at property, plant and equipment, and the depreciation of those assets, under question.

Recent surveys indicate that individuals and businesses purchasing goods over the internet are not properly remitting sales or use tax, many times in violation of state law (the estimated non-compliance rate in California was greater than 98%).

Basically, 1099 reporting requirements will continue to be the same as they’ve always been. This change will significantly decrease the compliance burden small businesses were anticipating. However, this recent change does not do away with the requirement that payers obtain and retain a form W-9, Request for Taxpayer Identification Number and Certification, for all payees.