1099's And You

14 years ago

Thanks

Signature

{{ DiscussionBoard.errors[2052702].message }}

LB

14 years ago

I think I just puked a little.

I guess this means that all those people who buy $2000 marketing courses will need to file 1099 to folks like John Reese, etc? (well, to their companies)

Can you imagine this?

What about a company like Amazon...if I buy software from them that costs more than $600 now I have to issue a 1099?

This is insanity on a new level.

Thanks
1 reply

Signature

Tired of Article Marketing, Backlink Spamming and Other Crusty Old Traffic Methods?

Click Here.

{{ DiscussionBoard.errors[2052820].message }}

N4PGW

14 years ago

Originally Posted by LB

I think I just puked a little.

SNIP

What about a company like Amazon...if I buy software from them that costs more than $600 now I have to issue a 1099?

This is insanity on a new level.

If I read it correctly, if you spend an average of $50/month with Amazon.com, you will be required to send the 1099. You don't even have to have a single product worth $100.

Thanks

Signature

{{ DiscussionBoard.errors[2126957].message }}

Texjd

14 years ago

If you outsource, you should be issuing 1099's right now. I've been doing it for several years. It's not really a big deal and you don't have a tax liability, they do. They have to report it as income.

I'm no legal beagle or accounting expert but that's what mine have told me for years. I get quite a few from my clients too.

Thanks
1 reply

{{ DiscussionBoard.errors[2052938].message }}

Floyd Fisher

14 years ago

Originally Posted by Texjd

If you outsource, you should be issuing 1099's right now. I've been doing it for several years. It's not really a big deal and you don't have a tax liability, they do. They have to report it as income.

I'm no legal beagle or accounting expert but that's what mine have told me for years. I get quite a few from my clients too.

Do you issue 1099's to your landlord? The local office supply store? Your power company? Your ISP, or your hosting company?

With this, now you must, or else.

Thanks

{{ DiscussionBoard.errors[2052976].message }}

Rob Howard

14 years ago

[DELETED]

{{ DiscussionBoard.errors[2053299].message }}

moniez

14 years ago

Originally Posted by ccmusicman

I can't believe this.

This is insane.

Looks like I'll be packing my bags and moving to another country.

Can you believe it?

- I buy a computer from best buy for my business - 2 1099's there. (plus hunting down Best Buy's info)
- I buy 600+ worth of supply from Wal Mart. 2 more 1099's.
- Hosting, aweber, my quiz script supplier, paypal, my outsourced workers, that's about 40 1099's right there.
- A car for the business - 2 more 1099
- Plane tickets - 2 more 1099's
- Frank Kerns new course - 2 more 1099's.
- The warrior forum for WSO's - 2 more 1099's.

I'm fuming mad right now.

I'm seriously considering moving out and getting citizenship elsewhere.

Rob

Agreed. This is what happens when everyone in this country, including me, becomes apathetic.

[ 1 ] Thanks

{{ DiscussionBoard.errors[2053309].message }}

MichaelHiles

14 years ago

It's just the change everyone was wanting.

[ 8 ] Thanks
1 reply

Signature

10XTS... I got your digital strategy right here...

{{ DiscussionBoard.errors[2053303].message }}

Rob Howard 14 years ago

[DELETED]

{{ DiscussionBoard.errors[2053315].message }}
- MichaelHiles 14 years ago
  
  Originally Posted by ccmusicman
  
  Yup. Great change. Lets destroy the economy. Yay.
  
  Rob
  
  That's the change everyone wanted. Listen, Obama was completely open about "changing it all". He said so up front. Since then, they have succeeded in nationalizing a massive segment of banking, automotive manufacturing, healthcare, and they're going after energy and agriculture before it's over.
  
  Whether or not you agree or disagree with the politics is now pretty much irrelevant. We got the change everyone wanted, and those evil capitalists are being shooed into history in real time.
  
  Wait until cap and trade gets passed, then you'll have to calculate your entire energy consumption, including everything that you consume as a business, and pay an additional tax if you exceed legislative limits (or fund some doogooder, feelgood social wealth redistribution scheme that is masked as some environmental program).
  
  [ 4 ] Thanks
  
  Signature
  
  10XTS... I got your digital strategy right here...
  
  {{ DiscussionBoard.errors[2053349].message }}
  
  Rob Howard 14 years ago
  
  [DELETED]
  
  {{ DiscussionBoard.errors[2053402].message }}
  
  tommygadget 14 years ago
  
  Originally Posted by ccmusicman
  
  Yup. It's nuts.
  
  Is there another country that guarantee's civil and political liberties that doesn't impose economic crushing taxes and other nonsense?
  
  Rob
  
  There's always Australia.
  
  TomG.
  
  PS - I am NOT going to issue 1099's to Staples, et. al. Only my major outsourcers.
  
  Thanks
  
  Signature
  
  $10,000/Month With Adsense? SIX Week Adsense Bootcamp Shows You How! Newbie friendly!
  Do Nothing, Make Money!
  Live Coaching Via Skype + Killer Bonuses!
  
  {{ DiscussionBoard.errors[2126020].message }}
Western Grizzlin' 14 years ago

Originally Posted by MichaelHiles

It's just the change everyone was wanting.

Couldn't have said it better.
- Thanks
{{ DiscussionBoard.errors[2053356].message }}

Ilya Feynberg

14 years ago

Did anyone here really expect the government to be competent in anything they do? This doesn't really come as a surprise to me. I hate the fact that I now have to pay my lawyers more to do this stupid sh*t though.

Thanks

{{ DiscussionBoard.errors[2053314].message }}

moniez

14 years ago

This law is probably going to be nearly impossible to truly regulate and enforce. Like you said, who is going to go to Walmart, buy a 1200 computer and say, "Oh, looks like I have to send in my 1099 now."

Thanks
2 replies

{{ DiscussionBoard.errors[2053348].message }}

mr2monster

14 years ago

Originally Posted by moniez

This law is probably going to be nearly impossible to truly regulate and enforce. Like you said, who is going to go to Walmart, buy a 1200 computer and say, "Oh, looks like I have to send in my 1099 now."

How many federal laws do you know of that are easy to regulate and enforce?

It just gives them strongholds over small businesses. At any given time, they issue a law that is so outlandish that not even the most well informed and organized small business could follow all of the rules. And then, in one fail swoop, you get audited, and royally fu&#*% and end up having to close up shop.

Hell, there are so many laws that contradict each other that it is impossible to be completely compliant. That's not even an exaggeration... I'm being serious.

Thanks

Signature

FREE Training - No Opt-In.
Learn To Make Money Buying and Selling

{{ DiscussionBoard.errors[2053766].message }}

Chris Grable

14 years ago

Originally Posted by moniez

This law is probably going to be nearly impossible to truly regulate and enforce. Like you said, who is going to go to Walmart, buy a 1200 computer and say, "Oh, looks like I have to send in my 1099 now."

Chances are.... you are WRONG! It's likely to be self policing. What makes you think they will let you take the tax deduction without the associated 1099.

Thanks
1 reply

{{ DiscussionBoard.errors[2053813].message }}

dljmktg1

14 years ago

I wouldn't panic just yet. Even if you have to do all the things mentioned here, which I really doubt, it should not be a big deal.

You should already be keeping records of every penny you spend. Who it's spent with, the date of purchase, the amount paid, etc. This is just standard record keeping. If it's kept in any type of spreadsheet, as it should be, it's easy to do a sort by vendor with the amount spent.

Not much work if you're keeping proper records. Maybe 30 minutes for the year. It's just one more chore.

But, hold on. In a couple years there's some changes that can potentially cost you a bunch of money depending on your situation. Such as a higher threshold for deducting medical expenses. Such as lower amounts you can contribute pre-tax to an HSA.

So, you ain't seen nothing yet. The big stuff is yet to come.

Dan

(yes, I am a tax professional)

Edit:

By the way here is a link to a document from the U.S. Treasury with a bit of explanation of these changes. Most of the changes talked about here start around page 97 of the pdf document.

http://www.treasury.gov/offices/tax-.../greenbk10.pdf

It's not exactly "plain" English, but close to it. This is about as close to the source as you can get since it will be the treasury that has to interpret any changes in the tax law.

[ 1 ] Thanks
3 replies

{{ DiscussionBoard.errors[2053874].message }}

Dan C. Rinnert 14 years ago

For those that don't believe this is true, here's some reading material for you:

Costly IRS Mandate Slipped into Health Bill | Cato @ Liberty

Hot Air Another Pelosi Easter egg in ObamaCare: IRS mandate on business

How a 1099 Tax Form Relates to Health Care

health care,1099, Pittsburgh, PA, Columbus, OH

1099Pro.com | IRSCompliance.org • View topic - Major Changes to 1099 Reporting Included in Healthcare Bill

May 2010 | Grindstone Financial

New requirements for Form 1099 after 12/31/2011 The CPA Group Blog

Lungren seeks to repeal reporting requirement in health reform - The Hill's On The Money

Healthcare mandate means billions more 1099 filings
- [ 1 ] Thanks
Signature

Dan's content is irregularly read by handfuls of people. Join the elite few by reading his blog: dcrBlogs.com, following him on Twitter: dcrTweets.com or reading his fiction: dcrWrites.com but NOT by Clicking Here!

Dan also writes content for hire, but you can't afford him anyway.
{{ DiscussionBoard.errors[2053969].message }}

Floyd Fisher

14 years ago

Originally Posted by dljmktg1

I wouldn't panic just yet. Even if you have to do all the things mentioned here, which I really doubt, it should not be a big deal.

You should already be keeping records of every penny you spend. Who it's spent with, the date of purchase, the amount paid, etc. This is just standard record keeping. If it's kept in any type of spreadsheet, as it should be, it's easy to do a sort by vendor with the amount spent.

Not much work if you're keeping proper records. Maybe 30 minutes for the year. It's just one more chore.

But, hold on. In a couple years there's some changes that can potentially cost you a bunch of money depending on your situation. Such as a higher threshold for deducting medical expenses. Such as lower amounts you can contribute pre-tax to an HSA.

So, you ain't seen nothing yet. The big stuff is yet to come.

Dan

(yes, I am a tax professional)

Good, then why don't you think about this:

I buy hosting from a UK company. Since they don't have a tax ID (for obvious reasons), I'm now required to take out tax from every payment I send them, and send it off to the IRS myself.

How do you think this will go over with them when they don't get their full payment? Think they might terminate my hosting account?

Think foreign entities will be loathe to do business with Americans based on this?

And what about companies like Staples, that have to keep and house all these 1099's that get sent to them forever? Think that isn't going to be a problem for them, they only got millions of customers.

And what about the person who uses their SSN in lieu of a tax ID (which is totally legal btw)? Think that won't open up new avenues for ID fraud?

Lundgren's got the right idea: Repeal asap.

[ 2 ] Thanks
2 replies

{{ DiscussionBoard.errors[2054050].message }}

dljmktg1

14 years ago

Originally Posted by Floyd Fisher

Good, then why don't you think about this:

I buy hosting from a UK company. Since they don't have a tax ID (for obvious reasons), I'm now required to take out tax from every payment I send them, and send it off to the IRS myself.

How do you think this will go over with them when they don't get their full payment? Think they might terminate my hosting account?

Think foreign entities will be loathe to do business with Americans based on this?

And what about companies like Staples, that have to keep and house all these 1099's that get sent to them forever? Think that isn't going to be a problem for them, they only got millions of customers.

And what about the person who uses their SSN in lieu of a tax ID (which is totally legal btw)? Think that won't open up new avenues for ID fraud?

Lundgren's got the right idea: Repeal asap.

According the the explanations from the U.S Treasury (see the edited link in my previous post), you won't have to do most of this.

You should not have to issue 1099s to your hosting provider. You are not hiring them as contract labor.

You will not issue a 1099 to Staples if you buy stuff from them. You are not hiring them as an independent contractor. But, if Staples pays a plumber several thousand dollars, now they will issue a 1099 to the plumber (they are hiring the plumber as contract labor).

The key to all of this is that 1099s are typically issued to people you hire to do a job, but who are not your employees. They are not issued to people or businesses you just buy stuff from.

Read the explanations from the Treasury. Most of what is here is wrong.

Dan

[ 2 ] Thanks
2 replies

{{ DiscussionBoard.errors[2054103].message }}

Floyd Fisher

14 years ago

Originally Posted by dljmktg1

According the the explanations from the U.S Treasury (see the edited link in my previous post), you won't have to do most of this.

You should not have to issue 1099s to your hosting provider. You are not hiring them as contract labor.

You will not issue a 1099 to Staples if you buy stuff from them. You are not hiring them as an independent contractor. But, if Staples pays a plumber several thousand dollars, now they will issue a 1099 to the plumber (they are hiring the plumber as contract labor).

The key to all of this is that 1099s are typically issued to people you hire to do a job, but who are not your employees. They are not issued to people or businesses you just buy stuff from.

Read the explanations from the Treasury. Most of what is here is wrong.

Dan

Dan:

Yes, I just did, and unless my english comprehension is off, 'Services and Determinable Gains' doesn't mean contract labor. That sounds an awful lot like products and services I purchase in the running of my business....like hosting.

Paging Brian Kindsvater, Bob Silber, and any other lawyers in here. Need some intrepretation on what that really means.

Thanks

{{ DiscussionBoard.errors[2054148].message }}

pcpupil

14 years ago

Originally Posted by dljmktg1

According the the explanations from the U.S Treasury (see the edited link in my previous post), you won't have to do most of this.

You should not have to issue 1099s to your hosting provider. You are not hiring them as contract labor.

You will not issue a 1099 to Staples if you buy stuff from them. You are not hiring them as an independent contractor. But, if Staples pays a plumber several thousand dollars, now they will issue a 1099 to the plumber (they are hiring the plumber as contract labor).

The key to all of this is that 1099s are typically issued to people you hire to do a job, but who are not your employees. They are not issued to people or businesses you just buy stuff from.

Read the explanations from the Treasury. Most of what is here is wrong.

Dan

This is true.I have had my own home remodeling buisness for 12 years.
The people i work for 1099 me,thats it.If its over $600.00.
My materials i buy at HD,Lowes,ect,wich ranges from $1,000,and up,i dont 1099 them.I mearly take a standard material or supply deduction on my profit and loss statement.

I dont remember the number because my accountant does my stuff,and that is also tax deductable.I pay $85.00 to mine,and she takes care of everything,including state taxes,and then i go and pick up my refund.

And,there are a lot of buisnesses that have to pay there taxes on a quarterly basis right now and have been for years,this is nothing new at all.

Also people that have there own buisness need to come up with some deductions.Just like the big boys.For instance 2 of mine out of the others are my cell phone,and vehicle mileage.

Just have to come up with ways to adapt.How about earning some cash sales that cant be traced.

Or as said,leave the country.I know of one person i have to get in touch with.He has 2 addresses,one in canada,and one in the staes,right across the border.I dont know how hes working that but im going to find out.

Matt

Thanks

Signature

I will be your Digital Assistance for cheap.PM me.
I can help relieve your work load.Pm me

{{ DiscussionBoard.errors[2054170].message }}

Josh Anderson

14 years ago

The E.U. already requires this of online U.S. Businesses selling to EU residents.

Taxation without representation anyone?

Originally Posted by Floyd Fisher

Good, then why don't you think about this:

I buy hosting from a UK company. Since they don't have a tax ID (for obvious reasons), I'm now required to take out tax from every payment I send them, and send it off to the IRS myself.

How do you think this will go over with them when they don't get their full payment? Think they might terminate my hosting account?

Think foreign entities will be loathe to do business with Americans based on this?

And what about companies like Staples, that have to keep and house all these 1099's that get sent to them forever? Think that isn't going to be a problem for them, they only got millions of customers.

And what about the person who uses their SSN in lieu of a tax ID (which is totally legal btw)? Think that won't open up new avenues for ID fraud?

Lundgren's got the right idea: Repeal asap.

Thanks

Signature

Nanacast Review

{{ DiscussionBoard.errors[2126052].message }}

Ryan D

Banned 14 years ago

Originally Posted by dljmktg1

But, hold on. In a couple years there's some changes that can potentially cost you a bunch of money depending on your situation. Such as a higher threshold for deducting medical expenses. Such as lower amounts you can contribute pre-tax to an HSA.
.

That's not for HSA's from my understanding, it's for FSA's. The FSA change means that you can no longer use them for OTC medication. Health care reform didn't touch HSAs.

But yeah, this 1099 rule is a nightmare. I don't even understand how this works in practice. You just fill the form out when you purchase something in the store? What about when you're doing business online? Do you have to do it the moment you cross $600.

Personally, there shouldn't even be corporate taxes if you ask me.

Thanks

{{ DiscussionBoard.errors[2126102].message }}

Negotiator74

14 years ago

I'm not downplaying the potential affect of this, however, if you use QuickBooks or some other worthwhile product, issuing 1099's is a breeze.

Thanks

{{ DiscussionBoard.errors[2053358].message }}

Rob Howard

14 years ago

[DELETED]

{{ DiscussionBoard.errors[2053459].message }}

Floyd Fisher 14 years ago

Originally Posted by ccmusicman

Hey Floyd,

I'm confused with this line:

What does "withhold income taxes from your payments" mean?

Rob

It means when you send them a payment, you take out the tax (as in income tax) from that payment, and send them the rest.

That tax then gets sent to the IRS my good friend (by you, on a quarterly basis IIRC).

I'm sure foreign businesses are going to be real understanding when that happens.
- Thanks
{{ DiscussionBoard.errors[2053697].message }}

rondo

14 years ago

That's crazy.

Thanks

Signature

Online courses

{{ DiscussionBoard.errors[2053467].message }}

tecHead

14 years ago

Seem to me that the wording is pretty straight forward. Logic provides us with a base of understanding via the current law...

Originally Posted by treasury.gov

Current Law
Generally, a taxpayer making payments to a recipient aggregating to $600 or more for services or determinable gains in the course of a trade or business in a calendar year is required to send an information return to the IRS setting forth the amount, as well as name and address of the recipient of the payment (generally on Form 1099). Under a longstanding regulatory regime, there are certain exceptions for payments to corporations, as well as tax-exempt and government entities.

My accountant has told me that 1099's (and 1098's for international transactions) are only obligatory for private contractor work; (i.e.: Affiliates); once the amount paid out exceeds $600 USD for the fiscal year.

So, (logic dictates), the Proposal is using the exact same wording...

Originally Posted by treasury.gov

Proposal
A business would generally be required to file an information return for payments for services or for determinable gains aggregating to $600 or more in a calendar year to a corporation (except a tax-exempt corporation). Regulatory authority would be provided to make appropriate exceptions where reporting would be especially burdensome.
The proposal would be effective for payments made to corporations after December 31, 2010.

This means the entities whom you are making these payments to; (private contractors); will not change from current law.

As stated in The Reason for the change...

Originally Posted by treasury.gov

Reasons for Change
Generally, compliance increases significantly for payments that a third party reports to the IRS. In the case of tax-exempt or government entities that are generally not subject to income tax, information returns may not be necessary. On the other hand, during the decades in which the regulatory exception for payments to corporations has become established, the number and complexity of corporate taxpayers have increased. Moreover, the longstanding regulatory exception from information reporting for payments to corporations has created compliance issues. Although the exception for information reporting to corporations is set forth in existing regulations, because it has been in place for many years and because Congress, during that time period, has made numerous changes to the information reporting rules, elimination of the exception should be made by legislative change.

Seems to me that this is being proposed to be put (more firmly) in place to "clarify" a lot of convoluted gray areas that big corporations have been slipping through and ducking on their tax obligations; (making it harder for us little guys).

IMHO, of course

PLP,
tecHead

Thanks
1 reply

Signature

Learn Everything You Need to Know About CryptoCurrencies
Automation is the primary conduit to successful relaxation

{{ DiscussionBoard.errors[2055283].message }}

Josh Anderson

14 years ago

Originally Posted by tecHead

My accountant has told me that 1099's (and 1098's for international transactions) are only obligatory for private contractor work; (i.e.: Affiliates); once the amount paid out exceeds $600 USD for the fiscal year.

You might want to check with your accountant because form 1098 is meant to detail the amount of interest and mortgage related expenses paid on a mortgage each year and NOT non-resident alien income.

The form international affiliates file from my understanding is a w-8ben and that is ONLY if they are an entity (not an individual) and have US activities which includes but is not limited to having employees or equipment in the US like a server you OWN not lease that is used in the generating of the related income.

Additionally if they are an individual they do not file form w-8ben but instead file form 8233. But again that is only if they have "U.S. Activities." If not no form is required.

Google who runs a massive affiliate program (adsense) has some good explanations:

Why can't I submit a W8-BEN form as an individual? - AdSense Help

Thanks

Signature

Nanacast Review

{{ DiscussionBoard.errors[2126186].message }}

Ernie Mitchell

14 years ago

I'm with your logic tecHead.

This is a tempest in a teapot.

Thanks
1 reply

{{ DiscussionBoard.errors[2057554].message }}

kindsvater 14 years ago

Hmmm. Don't know about you, but I have personally read the new Health Care Law. And then with my trusty red pen went through the amendments within the law, amendments to the amendments, and then the reconciliation bill which amended things some more.

(I know, only lawyer would think that is interesting.)

While I am not a tax professional and would normally defer to Dan, I have to agree with Floyd for several reasons:

1. I can read the statute. It imposes a ridiculous reporting requirement. I haven't thought about foreign providers - but I have always just assumed no reporting was ever required because they do not pay US taxes.

2. I've conferred with a CPA and obtained some of their 'industry insider' information. They're happy - the accountant full employment act is what they call it.

3. I've reviewed analysis from other business groups. I don't see anyone saying this is a non-issue.

4. While the link Dan provided is interesting, it has a couple problems.

A. From what I read, there is no analysis from the feds about what the requirement actually means.

B. This February 2010 report with text about a proposal is NOT the same as the text which made it into the final bill. Property transactions with businesses are now specifically included in the law - but not mentioned at all in that February link.

C. I wouldn't trust a self-serving report from the government about any proposal. There are over a dozen things Obama said in his State of the Union speech and then elsewhere about what he wanted in the law and what it would mean - that did not make it into the law. All that matters is what was enacted.

Personally, I think this is going to another law that will be disregarded, en masse, and if the government tries to fine someone for not reporting property purchases they will naturally pick on some small, sympathetic business - and after a bunch of bad publicity the law will be revised.
- Thanks
Signature
Use Elf Links to Stop Google's Affiliate Bans - Brian Kindsvater IM Help
{{ DiscussionBoard.errors[2060627].message }}

LB

14 years ago

New article about this today: Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010

Here's a relevant section:

The 1099 changes attached to the health care reform bill are another kettle of fish. These massively expand the requirements for filing the "1099-Misc" form, which companies use for recording payments to freelance workers and other individual service providers. Until now, payments to corporations have been exempt from 1099 rules, as have payments for the purchase of goods.

Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to -- even if it's a giant retailer like Staples or Best Buy -- at the time of the transaction, or else facing IRS penalties.

In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction.

"Just with business travel it would include hotels, rental cars," Henschke says. "Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day."

Anyone still think this is no big deal?

Thanks
1 reply

Signature

Tired of Article Marketing, Backlink Spamming and Other Crusty Old Traffic Methods?

Click Here.

{{ DiscussionBoard.errors[2125999].message }}

CDarklock 14 years ago

Originally Posted by LB

Anyone still think this is no big deal?

I think CNN is much more concerned with making people read their web site than they are with giving accurate tax advice.
- Thanks
Signature

"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
{{ DiscussionBoard.errors[2126024].message }}

ShaunAllen

14 years ago

:confused:

Thanks

{{ DiscussionBoard.errors[2126022].message }}

imseo

Banned 14 years ago

I'm glad I'm not a US resident.

Thanks

{{ DiscussionBoard.errors[2126078].message }}

LB

14 years ago

The joke of it is that they claim this is to close a "tax gap" where businesses aren't paying their taxes.

So basically the government is saying that when I buy a computer at Best Buy and declare it a business expense that they think Best Buy isn't paying their taxes on that income. Thus by issuing a 1099 it will be easier to find taxes on income that businesses should have declared.

Anyone think Best Buy is actually hiding income and needs my 1099?

What this is about is creating more "paper traps" the average taxpayer can get caught in. Guess what happens if you list an expense without the appropriate 1099? YOU pay the taxes on that amount and the expense is disallowed...and of course, you're still out the money for that expense.

This is truly insane. Another burden on big and small business alike that will raise costs for all of us and ensnare more people with penalties for legitimate tax expenses.

Thanks
1 reply

Signature

Tired of Article Marketing, Backlink Spamming and Other Crusty Old Traffic Methods?

Click Here.

{{ DiscussionBoard.errors[2126080].message }}

bgmacaw

14 years ago

Originally Posted by LB

This is truly insane. Another burden on big and small business alike that will raise costs for all of us and ensnare more people with penalties for legitimate tax expenses.

Oh, but they already have the solution waiting in the wings, the VAT, value added tax. You'll be begging for it after having to deal with 1099-ing everyone you come in contact with during your daily business operations.

Thanks

Signature

{{ DiscussionBoard.errors[2126630].message }}

zerofill

14 years ago

What I want to know now is...What about the money our government makes out of thin air? When they need it and just create it? They 1099 the fed for outsourcing the fake money they make? Yes I just ordered 50billion dollars from you...once you make it I will send payment through odesk and 1099 you.

Thanks
1 reply

Signature

Serp Shaker
The IM World Will Be Shaken to the Core!
Join my list at: IMCool.Biz
New Podcast --> podcast.imcool.biz

{{ DiscussionBoard.errors[2126198].message }}

ronr 14 years ago

For those saying it's a lot of talk about nothing, or it's just CNN wanting people to get people to their webpage or whatever don't be naive.

This is in the bill. I don't see how it can be complied with or enforced but if IRS track record or our politicians track record is any indicator you never know what the final result will be.

Don't just stick your head in the sand or saying it's nothing in hopes it will all go away. Do something about it. Call your representives about it and at least let them know how much this could impact your business.
- Thanks
{{ DiscussionBoard.errors[2126300].message }}

Chris Worner

14 years ago

I am glad I dont live in the United States.

Land of the free? BWaHAHAHAHA!!!!

First alimony, now this! sucks to be you guys!

Chris

Thanks

Signature

{{ DiscussionBoard.errors[2126653].message }}

Russ Emrick

14 years ago

Those who are saying this is nothing are not only misinformed but spreading dangerous misinformation. The idea that Quickbooks solves this is ludicrous.

Never before did you have to issue 1099 for every vendor, corporation or expenditure of your business - which is what you have to do now. I spend more than $600 a year at Sams, at Staples and dozens of businesses. Even if Quickbooks will track and print out 1099s the work, time, and expense is horrendous.

Come on think about what you write, please. This is another Small Business killing government action and certainly anti-jobs, anti-growth - unless of course you want to work for the IRS.

Thanks

Signature

http://breakoutselling.com

{{ DiscussionBoard.errors[2126655].message }}

rondo

14 years ago

This sounds backwards to me. The seller already issues paperwork in the form of a receipt or invoice, so why would the buyer also need to issue paperwork to the seller?

Thanks

Signature

Online courses

{{ DiscussionBoard.errors[2126885].message }}

TiffanyB

14 years ago

I don't have any really big payments to one person expect outsourcing writing articles and I just started that this year. I have no problem sending out a 1099 to a freelance writer but for the purchases of goods and things of that nature is just ridiculous. Just another way that the government doesn't want to make things easy on small businesses.

And I'm sure that the places like Staples and Walmart are going to love all these 1099s that they are going to be receiving in the mail. I guess CPA's will make out nice since now you will have to pay them double what you did before because they will be doing twice the work with all these 1099s.

Thanks

{{ DiscussionBoard.errors[2126916].message }}

SmartyD

14 years ago

There you go LB Laughing is not nice !

Thanks
1 reply

Signature

Turn your used articles into videos for just 5 bucks.

{{ DiscussionBoard.errors[2126981].message }}

LB

14 years ago

Originally Posted by SmartyD

I am actually an accountant and do personal and company taxes for a living and it should not be a big deal for walmart and those others as long as you have a reciept that is fine I think what they are saying is that if you are going to hire someone for a job and pay them well then they should pay thier taxes for it like everyone else. I t should be nothing to you to file a 1099 I mean they give them free at the IRS website. I would suggest to start asking their info before paying I get a lot of clients that wait till the end to ask for the social and well they never get it and they are the one paying the taxes for that money. Just think of it as saving money. Every time you give someone a 1099 you just saved yourself money cause now you don't have to pay for their taxes. Hope that helped. If you guys need help getting that form just email me @ studentdse @gmail.com ill be happy to find you the link from their website just include the year you want them for. Ill also help you fill it out if you need help.

L O L

Wow, just wow. Rarely am I lost for words...but I am.

Thanks
2 replies

Signature

Tired of Article Marketing, Backlink Spamming and Other Crusty Old Traffic Methods?

Click Here.

{{ DiscussionBoard.errors[2127005].message }}

kindsvater 14 years ago

Sometimes I may have used the word 'accountant' a little too loosely. Licensed CPA is what I am really referring to.
- Thanks
Signature
Use Elf Links to Stop Google's Affiliate Bans - Brian Kindsvater IM Help
{{ DiscussionBoard.errors[2127029].message }}

Kay King

14 years ago

If I read it correctly, if you spend an average of $50/month with Amazon.com, you will be required to send the 1099. You don't even have to have a single product worth $100.

That simply does not make sense. Either it's poorly written or it's being badly interpreted. Common sense tells me some of the assumptions will not apply when this takes effect.

Are you going to hand the grocery cashier a 1099? Don't think so. I think when it comes time to require it - it will be for services rendered but not for items purchased.

It's the big problem with bills passed - and ESPECIALLY when they are rushed through after changes at the last minute. There's a reason for the rush "to get it done now"...before anyone has a chance to wade through thousands of pages and find stuff like this.

Thanks
1 reply

Signature

Saving one dog will not change the world - but the world changes forever for that one dog

***

One secret to happiness is to let every situation be

what it is instead of what you think it should be.

{{ DiscussionBoard.errors[2127037].message }}

LB

14 years ago

Originally Posted by Kay King

That simply does not make sense. Either it's poorly written or it's being badly interpreted. Common sense tells me some of the assumptions will not apply when this takes effect.

Are you going to hand the grocery cashier a 1099? Don't think so. I think when it comes time to require it - it will be for services rendered but not for items purchased.

It's the big problem with bills passed - and ESPECIALLY when they are rushed through after changes at the last minute. There's a reason for the rush "to get it done now"...before anyone has a chance to wade through thousands of pages and find stuff like this.

The way the bill is written now, it would include products as well as services. That's why it's so insane, it's also why I posted the CNN article to show they had the same interpretation of it.

We can hope it changes before it goes into effect, but it's time to make yourself heard to your local and federal government so this does not go in as is...I'm less than hopeful though.

Thanks
2 replies

Signature

Tired of Article Marketing, Backlink Spamming and Other Crusty Old Traffic Methods?

Click Here.

{{ DiscussionBoard.errors[2127195].message }}

Russ Emrick 14 years ago

Love it

Q: Mr. Holder, have you read the bill

A: No, but I still feel qualified to discuss it

CNNs interpretation matches that of the WSJ and everyone else who has actually read it.

Oh, and I'm shocked that an accountant likes this bill. Shocked I tell you. Should be easy for us, sure. April 15th is a blast too.

You couldn't make this stuff up.

Remember you will get hundreds if not thousands of these 1099s yourself - and have to account for them in your return. Party time.

As part of the Clean Water Act perhaps they could add a system for how many times I flush the John, or a Carbon tax on how many times someone farts.

Imagine the costs that a Walmart or Office Max will have when they get millions upon millions of 1099s from contractors, businesses, and entrepreneurs? Does anyone think through the consequences of these ideas?

For the accountant that thinks this is so great I have an idea: don't charge any additional money for doing the tax filing and accounting work caused by this system. Yeah, sure. Until then perhaps you shouldn't be commenting on inane laws the feather your nest.
- Thanks
Signature
http://breakoutselling.com
{{ DiscussionBoard.errors[2127212].message }}

Floyd Fisher

14 years ago

Originally Posted by LB

The way the bill is written now, it would include products as well as services. That's why it's so insane, it's also why I posted the CNN article to show they had the same interpretation of it.

We can hope it changes before it goes into effect, but it's time to make yourself heard to your local and federal government so this does not go in as is...I'm less than hopeful though.

Well, there is a little item you're forgetting.....elections. See you at the polls.