Those voices don't speak for the rest of us

[30ashopper]

[strike]AFAICT, credit cards aren't exempt.[/strike] And yes, it's for absolutely every vendor you transact with where the total amount is over 600.00.

http://www.cato-at-liberty.org/2010/04/26/costly-irs-mandate-slipped-into-health-bill/

The good news is, Republicans are trying to repeal it. Can't wait for November!

edit - credit card transactions are reported by the credit card processing companies. Lookout! Big Brother is watching!

 

[scooterbug44]

That's not entirely true, Scooty. If you are a new business starting out, even if you offer a lower price on certain items, other companies are already thinking about narrowing down the amount of vendors they will do business which will result in more national vendors and less smaller businesses. Small businesses are the crux of our Countries domestic gross product. It's also where the most innovation stems from, the hungry entrepreneur.

I still don't understand why someone filling out a 1099 form puts small businesses out of business and is such a hassle. It's an existing form, it's a normal accounting function to do it, and it's for stuff you SHOULD* already be keeping track of for tax purposes.

Seriously - it's a basic tax/accounting procedure I know how to do and it takes maybe 5 minutes.

* Which is what I think the real fuss is about.

 

[Lynnie]

Scooterbug, you should run the world. Very solid and practical outlook.

 

[Mango]

I still don't understand why someone filling out a 1099 form puts small businesses out of business and is such a hassle. It's an existing form, it's a normal accounting function to do it, and it's for stuff you SHOULD* already be keeping track of for tax purposes.

Seriously - it's a basic tax/accounting procedure I know how to do and it takes maybe 5 minutes.

* Which is what I think the real fuss is about.

The statistics are showing that the typical small business will be averaging 200 1099's a year. That is a heck of a lot of phone calls to make to get EIN #'s or SS #'s, not to mention the processing and mailing of 1099's. I think that is what all the fuss is about.

 

[AndrewG]

Get EIN's is like pulling teeth. It might seem like a 5 minute process but it's not. Just more red tape getting in the way of being competitive.

 

[idlewind]

I still don't understand why someone filling out a 1099 form puts small businesses out of business and is such a hassle. It's an existing form, it's a normal accounting function to do it, and it's for stuff you SHOULD* already be keeping track of for tax purposes.

Seriously - it's a basic tax/accounting procedure I know how to do and it takes maybe 5 minutes.

* Which is what I think the real fuss is about.

1. It will require business to file more forms and worry about keeping records for small amounts to purchase ordinary items at a very low monetary threshhold.
2. The worry is that the solution for many businesses will be to limit purchases to a handful of suppliers and that will hurt the small businesses disportionally.
3. The amount of additional revenue garnered will be a drop in the bucket compared to what the regulation will cost the economy in lost productivity.

 

[futurebeachbum]

I still don't understand why someone filling out a 1099 form puts small businesses out of business and is such a hassle. It's an existing form, it's a normal accounting function to do it, and it's for stuff you SHOULD* already be keeping track of for tax purposes.

Seriously - it's a basic tax/accounting procedure I know how to do and it takes maybe 5 minutes.

* Which is what I think the real fuss is about.

Its going to be a huge amount of work for small businesses. 1099s are currently only used for services, not products.

We buy a lot of supplies on the Web from Amazon Marketplace. We already pay use tax on them. Under these rules, I may have to track down individual sellers in the marketplace and get their IDs and addresses for 1099s. Same for EBay.

If you have personnel in the field purchasing parts or supplies you'll have to keep up with all of it. If 1 tech buys $300 at the ACE hdwe on one side of town and another tech buys $300 from the ACE hardware on the north side of town and they happen to operate under the same Tax ID, you have violated federal law if you don't 1099 them.

How much time are you going to have to spend tracking the tax IDs and mailing addresses of every place your business spends money so that you can be compliant?

Can't you just see the eyes glazing over when you ask the kid behind the counter at the 7/11 for his Tax ID?

We host meetings and bring in refreshments from lots of different local cafes and deli's. We like supporting the local firms.

That will have to end. We'll pick one and use only it. Its too much trouble to track otherwise.

For employees that travel extensively, 1099ing the airlines, the car rental companies (is that corporate or a franchisee in that town?) and the hotels and restaurants is going to be soooo easy,

 

[Mango]

I believe air and hotel will be exempt, but maybe I am wrong; but my eyes glazed over just looking at the list FBB wrote, exempting many other examples. Didn't even think of the Amazon marketplace, Yikes! :shock:

If the IRS just audited all the politicians tax returns, I bet they would find all the money they need much easier. Throw in rewards for disgruntled employees and wives/husbands for tax evaders and voila, there are your supplemental funds for the health care bill.

 

[beachFool]

Its going to be a huge amount of work for small businesses. 1099s are currently only used for services, not products.

We buy a lot of supplies on the Web from Amazon Marketplace. We already pay use tax on them. Under these rules, I may have to track down individual sellers in the marketplace and get their IDs and addresses for 1099s. Same for EBay.

If you have personnel in the field purchasing parts or supplies you'll have to keep up with all of it. If 1 tech buys $300 at the ACE hdwe on one side of town and another tech buys $300 from the ACE hardware on the north side of town and they happen to operate under the same Tax ID, you have violated federal law if you don't 1099 them.

How much time are you going to have to spend tracking the tax IDs and mailing addresses of every place your business spends money so that you can be compliant?

Can't you just see the eyes glazing over when you ask the kid behind the counter at the 7/11 for his Tax ID?

We host meetings and bring in refreshments from lots of different local cafes and deli's. We like supporting the local firms.

That will have to end. We'll pick one and use only it. Its too much trouble to track otherwise.

For employees that travel extensively, 1099ing the airlines, the car rental companies (is that corporate or a franchisee in that town?) and the hotels and restaurants is going to be soooo easy,

Rest assured this provision will be amended.

Remember we spent a lot of time "debating" death panels.

Or was it death squads?

 

[scooterbug44]

The Amazon example aside, I still don't see why it is so hard - you just enter all the receipts in a computer program - at the end of the year you do a 1099 for all of those that total $600 or more. I bet there's even an app for that. ;-) I already do this to keep track of deductions, mileage, reimbursibles, and spending. Heck I've got spreadsheets for my golf scores and car mpg and those aren't my income source/cash flows.

You should already have a good idea as to what businesses you are already spending $600 or more a year with. Once you get the #s, you just keep using them.

Hmmm, maybe this will make it more attractive to use a local business than an anonymous internet source. ;-)