Ping: Small Business Owners (1099 Misc)
Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010
The main piece - tarting 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. As a small business owner, I can't even wrap my head around this. For 2009, this would have resulted in me issuing around 35 1099's. Walmart, Office Max, USPS, U-line plus a host of private individuals (which I have no idea how in the world someone is just going to hand over their SSN to me so I can issue them a 1099) On a basic level, I see what they are doing, but the pure admin headache this will cause... good lord. |
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Well, time to talk to the accountant, this will be a headache for my online biz...Yahoo, MSN, Google, 7 search, The company I work for, my suppliers wow...some of my contract artists I have hired and even some of my friends I have paid for marketing.....not looking like it's going to be fun. |
Yeah - I saw this earlier this morning and said "shit...this is gonna be some serious fucking work for me."
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Well, everyone wants tax cheats to be caught. Unfortunately, more work is probably how to do it. (This does kindof sound dumb, tho)
SI |
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They will get swamped with paperwork, that is for sure. Definitely not sure how a resale business would do this. I imagine that Gamestop has a few people where they easily buy back over $600 in games in a calendar year. So, they just issue 1099s to customers?? |
Someone told me about this and I was hoping they were misreading it. This will cost me a ton of extra work.
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wouldn't there be a market here for a third party company to act as a purchasing agent. Like maybe you pay them a couple points and only have to deal with one 1099
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Paypal and services like that will begin issuing 1099's in 2011 as well. So all of you who sell on Ebay...watch out. :)
hxxp://taxprof.typepad.com/taxprof_blog/2010/03/irs-to-start.html |
Dola - this new regulation is totally and completely pointless and will do nothing to catch those big time tax cheats. :)
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I knew about the 1099Ks back in 2008. Limited to 200 individual payments AND $20K in transactions Much smaller scale and I welcomed that change since some of my competitors are not paying taxes and I know they take in more than $20K per year. Bastards. :) |
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