Sneak Peek: New 1099 from your friends at the IRS
A few days ago there was a post about the new IRS rule for 1099 forms. Now you will have to fill out 1099s for anybody, or any company you spend more than $600 at over the course of the year.
Buy an office chair from Wal-Mart for $100 in January? $50 for printer cartridges and $70 for anti-virus software in May? A new mouse for $30 and Dragon Naturally Speaking for $99 in June? Then purchase a new printer for $250 in December?
Then you are only at $599, and do not have to get Wal-Mart's Tax ID. BUT, BUT, BUT...you BETTER start keeping track in January for every single place you spend money for your business, just in case.
Here is a sample of the form from the IRS.
Attachment 4737
This is going to be a lot of fun for everybody in the US.
What irritates me isn't that the IRS is doing this, it's that they HAVE to do it because so many people claim false deductions. This is meant to help close the gap.
My accountant charges $25 to fill out a 1099, I usually have 1 or 2 filled out per year. Now it may be in the dozens. I will basically have to start filling them out myself, not that I can't...
But, notice on the form that it mentions the "Paperwork Reduction Act"!
Ha. Ha. Freaking. Ha.
So, what do you think of the form? Do you think it makes sense? How would you improve it?
All the best,
Michael
"It's easier to fool people than to convince them that they have been fooled. -- Mark Twain
Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path