Interesting Tax law implications

Ron

Ron

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Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010 http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm

The main piece -

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.

As a small business owner, I can't even wrap my head around this. For 2009, this would have resulted in use issuing around 35 1099's. Walmart, Office Max, USPS, Lowe's 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.
 
Yeah, it's going to fawk us.

And here's the thing: that shit costs MONEY. Money that your business could be reinvesting or paying to you is going to go to the accountant and the lawyer instead. Nothing against those guys, but overhead is overhead.
 
sooooo glad all this goes into effect in '12, the year after i graduate. im sure my dad will be oh so eager to make this one of my new "responsibilities" since ill be fresh out of college and so full of knowledge :shaking:
 
I don't even understand the current laws and I'm scared to death on how to properly handle them. So here's another something to make it harder for the small bus. man- more gov't control and a squeeze on the simple mans ability to self employ. Damit I don't want to work for the man for the rest of my life, how the hell I'm I ever going to get a full grasp on the shit I need to be able to handle.
 
Wow, what a pita. That puts a stop to a whole lot of not reporting things. I predict a lot of price increases in 2012 if not before from small businesses.
 
It starts in 2012.
 
Me: Yes Ma'm I am going to need a W-9 form to complete this transaction and a mailing address to send the 1099 to.
High School Walmart cashier: Huh? I get the CSM
WalMart CSM: What you need
Me: Yes Ma'm I am going to need a W-9 form to complete this transaction and a mailing address to send the 1099 to.
WalMart CSM (over PA system): What aisle do we keep the W9 forms on?
 
GubNi said:
Did it pass? When does it go into effect?
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Yes, it passed....yet another item hidden in the health care overhaul and government expansion act.

It's really not a big deal...the IRS will refine and release the actual rules. Basically, corporations have always been excluded from the 1099 requirement (on the receiving end). Only individuals and partnerships were issued 1099's. Now, there are so many types of incorporations, and so many nowadays -- even many entities that used to be, and probably should still be, partnerships or sole props.

Surely, the refined/released IRS code will exclude major corporations, normal bills for services like telephone, etc.

I hate taxes...but I think this is a good thing.
 
This is just stupid. Just a way for the government to get their hands in our pockets deeper. I honestly think they are out to make it so difficult to properly file taxes that people screw up and are forced to pay more money in penalties, thus increasing the revenue for the government.
 
Blaze said:
This is just stupid. Just a way for the government to get their hands in our pockets deeper. I honestly think they are out to make it so difficult to properly file taxes that people screw up and are forced to pay more money in penalties, thus increasing the revenue for the government.
Click to expand...

Well, to be fair, I don't think they are trying to get DEEPER into our pockets - just better ensure they are getting what they are supposed to.
I mean, really, from their point of view, thsi is just an accounting thing to not let folks slip by as easily.

Is it the right way to go about it? NO.
But at least the intention is reasonably fair.
 
kaiser715 said:
Surely, the refined/released IRS code will exclude major corporations, normal bills for services like telephone, etc.
I hate taxes...but I think this is a good thing.
Click to expand...

Ah, but you've actually highlighted a major problem with this law. A problem that's becoming increasingly common: a vaguely-worded, overly broad bill gets passed into law by our elected representatives. Said bill has potentially high regulatory costs, excessive penalties for non-compliance, and nobody is exactly sure what the scope or implications will be in practice. For those answers, we depend on a burgeoning group of unelected bureaucrats to write the regulations which actually determine what the bill really means and how it will be put into practice.

And when the next Administration comes into power, those regulations will change. "Interpretations" will be "revised", and you'll have to go back through all your records and ensure you're in compliance with the new rules.
 
So i guess I'm gonna need a 10-99 for everytime I buy a car, thanks IRS....
 
That's the best overall point made yet. It really boils down to the fact that our gov't has branched out into doing things it was created to protect us from, and worse yet has passed powers down the line that affect citizens in a much more substantial way than ever before. Bigger gov't means more oversight and more oversight leads to more neglignece (sp?) and or more abuse. Our policies have become so far reaching and so politically correct to satisfy lobbying factions from various angles nothing is accomplished through any reform. Less gov't and a greater ability to generate free enterprise along with smaller legislation aimed at specific "problems" to protection of our freedoms is where we need to be. This was the original constitutions aim. Let individuals earn and use our God given freedoms to succeed or fail as we may. I don't want or do not ask any oficial to do it for me. Throw out about half the crap cluttering our system of politics, since that is all our policies have become and return to our roots so as a nation we can find our Freedom again. Until we stop handing out quit supporting those at home and abroad who want help themselves this way of thinking will never come to be and we will keep blindly marching toward socialism. Taxes yes we need them, but they need to be presice unbiased and dollar for dollar, no breaks or benefits rich or poor. the statis quo is leading to the haves and have not with no middle class in the middle.
 
1983Bronco said:
So i guess I'm gonna need a 10-99 for everytime I buy a car, thanks IRS....
Click to expand...

not if you buy cheaper/crappier cars. That'll show 'em.
 
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