Pretty soon we will just beg the IRS to take it all

[MikeBjerum]

http://www.usatoday.com/money/smallbusiness/2010-07-08-taxreporting08_ST_N.htm

 
Small businesses,
charities face more
reporting rules

Updated 8h 33m ago

By Sandra Block, USA TODAY

A little-known provision in the health care reform
law could significantly increase tax recordkeeping
requirements and costs for nearly 40 million self-
employed workers, small businesses and charities,
the IRS' national taxpayer advocate said Wednesday.

Starting in 2012, self-employed workers, small
businesses, charities and government agencies will
be required to issue Form 1099s to every vendor
from which they purchase more than $600 in goods
during the year.

For example, a self-employed consultant who buys
a $700 computer from an office supply store would
be required to send a Form 1099 to the store and
the IRS.

Currently, businesses are required to provide Form
1099s for services, such as payments to
independent contractors, but not for goods.

IRS: Lacks clout to enforce mandatory health
insurance

The provision is designed to provide the IRS with
more information about income and deductions
reported by small businesses. Underreported
income from small businesses accounts for a
significant portion of the $300 billion "tax gap,"
according to the IRS. The tax gap is the difference
between the amount owed the government and the
amount taxpayers actually pay.

The Congressional Budget Office estimates that the
new reporting requirement will raise $17 billion in
tax revenue over 10 years, which would be used to
offset some of the costs of health care reform.

But in an interview, IRS taxpayer advocate Nina
Olson said the requirement could force small-
 
business owners and charities to purchase new
software and hire additional accounting services.

Businesses that make qualified purchases from at
least 250 vendors during a year will be required to
file their 1099s electronically, generating an
additional expense, she said.

"I'm not sure that the information that we get from
this will be so valuable that the burden it puts on
taxpayers is justified," she said.

IRS spokesman Terry Lemons said the IRS has
proposed exempting some small-business
purchases made with credit or debit cards from the
new reporting requirement.

"We're looking at ways to try to minimize the burden
on businesses as much as possible," he said.

Under a law enacted in 2008, starting in 2011,
financial institutions and payment processors must
report businesses' credit and debit card payments to
the IRS. That means the IRS will already have a
record of those transactions, Lemons said.

My red just one of the things that make my blood boil.  I can't even begin to think of the list of people that are going to be required to submit these forms, but can you imagine what companies like Best Buy and Walmart are going to do with 1099's. 

There is already a rule in affect that touches on this:  On the farm, if we have tiling done and the contractor is not incorporated we must give them a 1099.  The responsibility is our to determine if we do or do not need to 1099, and the penalty is ours if we blow it.  The other side is that the contractor needs to separate their income on tax papers between what has been 1099'd and what hasn't, and if they miss a 1099 they get a nasty letter and need to file a correction.

Don't you love what our leaders have done to our free country   

[Hazcat]

Have any idea how many different trucks I use every year (100+!)?  This will be a NIGHTMARE for me!

[MikeBjerum]

Have any idea how many different trucks I use every year (100+!)?  This will be a NIGHTMARE for me!

I thought of naming you in my questions!  Look around your office and tell us how many electronics dealers you will be sending paperwork to.  The devil is in the details, and I'm afraid we haven't met him yet.

[ericire12]

I think the boys at the IRS are feeling the heat from all the fair tax talk and are trying to become too big to dismantle

[r_w]

I think the boys at the IRS are feeling the heat from all the fair tax talk and are trying to become too big to dismantle

Too big to fail is complete BS.  Too big GUARANTEES failure! 

[Sponsor]

[tombogan03884]

Too big to fail is complete BS.  Too big GUARANTEES failure!  

Especially when your talking about Govt.
Ask the Soviets or the Greeks how THAT worked out for them.

[TAB]

omfg,   last year alone, when i didn't do shit for biz, that would be like 50 1099s.

for 08 it would have been well over 100.

fook that.


just off the top of my head, here is a short list of places i'd have to send them too.

  hd/lowes
2x tile stores
4x plumbing stores
7x lumber yards
2x electrical supplyers
5x stone yards
4x building suppliers
3x paint stores
2x auto parts stores
4x fuel companys

and thats not even inculding the odds and ends like hard ware, tools, fixures... etc etc

hell i most likly spend 600 a year in the local hardware store, i'm sure they want me to send them a 1099..    

[alfsauve]

This is the greatest of opportunities to mess with the IRS.  NOW DON'T actually do this, but this is how it would go down.

 someone  writes a  program (spreadsheet, whatever) and prints huge number of bogus  ones of these.   Of course they  would  be from a bogus company.   Maybe from a company or organization they didn't like. And mail them to the IRS.   Now at the IRS "intake" centers, they'll open and start processing them (entering them in the computer).    Then when they try to reconcile them, they won't match.  Oh the havoc this would cause on the IRS and companies "named" in the 1099s. 

Again, don't do this, it's just a theory how someone else might mess with the system.   I'm just saying.

[Solus]

This is the greatest of opportunities to mess with the IRS.  NOW DON'T actually do this, but this is how it would go down.

 someone  writes a  program (spreadsheet, whatever) and prints huge number of bogus  ones of these.   Of course they  would  be from a bogus company.   Maybe from a company or organization they didn't like. And mail them to the IRS.   Now at the IRS "intake" centers, they'll open and start processing them (entering them in the computer).    Then when they try to reconcile them, they won't match.  Oh the havoc this would cause on the IRS and companies "named" in the 1099s. 

Again, don't do this, it's just a theory how someone else might mess with the system.   I'm just saying.

When you don't do this, wear rubber gloves when  handling the paper and mail it from an adjoining state.   

[PegLeg45]

FTA:

"We're looking at ways to try to minimize the burden on businesses as much as possible," he said.

Oh yeah??
Here's an idea, STOP MAKING STUPID FREAKING RULES!!!   

That might 'minimize the burden' on businesses.


BASTARDS!