Ping: Small Business Owners (1099 Misc)

[Mustang]

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.

[MacroGuru]

Originally Posted by Mustang

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.

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.

[DaddyTorgo]

Yeah - I saw this earlier this morning and said "shit...this is gonna be some serious fucking work for me."

[sterlingice]

Well, everyone wants tax cheats to be caught. Unfortunately, more work is probably how to do it. (This does kindof sound dumb, tho)

SI

[Mustang]

Originally Posted by sterlingice

Well, everyone wants tax cheats to be caught. Unfortunately, more work is probably how to do it. (This does kindof sound dumb, tho)

SI

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??

[RainMaker]

Someone told me about this and I was hoping they were misreading it. This will cost me a ton of extra work.

[stevew]

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

[Farrah Whitworth-Rahn]

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

[Farrah Whitworth-Rahn]

Dola - this new regulation is totally and completely pointless and will do nothing to catch those big time tax cheats.

[Mustang]

Originally Posted by Farrah Whitworth-Rahn

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

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.