http://money.cnn.com/2010/05/21/smal...eluge/?npt=NP1
I read this and shake my head in dis-belief. What is this going to accomplish
except to drain more of the life out of small businesses. We will drown in paperwork.
- repairman
- 05-22-2010, 09:25 PM
- TexTushHog
- 05-24-2010, 02:47 AM
We already send about 75 - 100 1099s a year. I talked to my accountant and he said based on our last years books that the new regs will have us sending out about 100 additional 1099 and will take him about 2 minutes to push a button and have them print. A secretary will have to stuff them in a envelop which should take about 20 minutes, plus the cost of postage.
Much ado about nothing. And if it helps make those who are evading tax pay, I'm all for it, because I pay all my tax and so should they.
Much ado about nothing. And if it helps make those who are evading tax pay, I'm all for it, because I pay all my tax and so should they.
- dentonseek
- 05-24-2010, 11:29 AM
We already send about 75 - 100 1099s a year. I talked to my accountant and he said based on our last years books that the new regs will have us sending out about 100 additional 1099 and will take him about 2 minutes to push a button and have them print. A secretary will have to stuff them in a envelop which should take about 20 minutes, plus the cost of postage.
Much ado about nothing. And if it helps make those who are evading tax pay, I'm all for it, because I pay all my tax and so should they. Originally Posted by TexTushHog
That may be true in your case but not so for some of us. First we will have to send 1099's to Corporations who provide us with service/goods (Cell Phone, Internet, Insurance, Electricity, Water, Professional Services, Waste Management, Advertising, etc), then we will have to send 1099's for any goods/services purchased for daily use, resale, or use in creating/performing our products/jobs. (Which amounts to over 200 companies for my business)
If I travel to a job site, procure the necessary products, complete the project and come home...thats :
1099 Airline
1099 Rental Car
1099 Hotel
1099 Electronics Retailer(s) - Usually about 4 or 5
1099 Microsoft
1099 Cisco
1099 Telco Company
1099 Cable Installer Guys
1099 Cleanup Crew
1099 Contactors I hired for the Project (4-8 guys)
1099 Lift Rental
1099 Electrician
Thats roughly 20 1099's I have to fill out and keep track of for just one project. I have about 15-20 projects a year, and thats outside of business at the home office. My accountant can't press a button and make that happen.
So if I use multiple airlines (which I do for cost efficiency), multiple rental car companies (Hotwire picks them) and multiple Hotels (I do-based on TripAdvisor recommendations) and multiple everything else...i'm basically going to be taking on a desk job unless I hire someone (other than my accountant who WILL charge me a shit ton more) to do it all for me.
Sorry, but this is just a bit much. Why don't I just submit my company Credit Card Statements and the IRS can figure that shit out on their own time ??? I'm paying for that too.
- repairman
- 05-24-2010, 09:16 PM
Dentonseek, you have hit upon some of the things I have concern about. I will be required to obtain the Corporate address and Federal Tax ID of almost every business that I buy from during the year. ( home Depot, Sears, Best buy. Lowes.....many many others. On the other hand....
I am a small business that provides services to customers. I use my SS number as my Federal Tax ID number. Under the rule, as I understand it now, I will be required to provide my SS number to anyone coming to me for my repair service, and requesting it.?????? WTF??? In this day of increased security concern, it don't make no sense at all.
Perhaps time will tell as to just how invasive these new 1099 and 1099k rules will evolve.
I am a small business that provides services to customers. I use my SS number as my Federal Tax ID number. Under the rule, as I understand it now, I will be required to provide my SS number to anyone coming to me for my repair service, and requesting it.?????? WTF??? In this day of increased security concern, it don't make no sense at all.
Perhaps time will tell as to just how invasive these new 1099 and 1099k rules will evolve.
- TexTushHog
- 05-25-2010, 05:23 AM
As I understand it, if you put your airline on your credit card, you send your 1099 to the credit card company, not the airline. Then the credit card company sends a 1099 to the airline.
And DentonSeek, what software to you use to do your books? Granted, I have an in-house CPA, but our bookkeeping program automatically spits out the 1099s. Once you enter the vendor information, which you do at the time you write the check, the program spits out 1099s at the end of the year when you ask it to. I would think that your bookkeeping program -- Quickbooks, Peachtree, or whatever -- would have a similar feature.
And DentonSeek, what software to you use to do your books? Granted, I have an in-house CPA, but our bookkeeping program automatically spits out the 1099s. Once you enter the vendor information, which you do at the time you write the check, the program spits out 1099s at the end of the year when you ask it to. I would think that your bookkeeping program -- Quickbooks, Peachtree, or whatever -- would have a similar feature.