Might be old news, but get ready for 1099-K

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Oct 6, 2008
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Just saw this on CNN but it reminds me of another story about some affiliate marketer guru getting fined millions for not sending 1099 forms to each one of his thousands of affiliates.

Stealth IRS changes mean millions of new tax forms
Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010

Excerpts from the article.
The 1099 is a catch-all series of IRS documents used to report non-wage income from a variety of sources like contract work, dividends, earned interest and pension distributions. The new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards.

The rule comes with a floor to weed out the most casual retailers: The 1099-K is only required when a merchant has at least 200 payment transactions a year totaling more than $20,000. But it applies to all payment processors, including Paypal, Amazon.com, and others that service very small businesses.

In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction. "Just with business travel it would include hotels, rental cars," Henschke says. "Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day."
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big surprise.. more encumberances on small businesses hidden in the depths of unrelated bills introduced by democrats, who won't even admit adding it.

How did this sweeping provision end up hidden in the health reform bill? No one is willing to take credit for introducing the new legislation, which appeared in the Senate Finance Committee's version of the health bill last fall. Committee chairs Don Baucus, D-Mont., and Chuck Grassley, R-Iowa, both referred calls to committee staffers, who wouldn't comment on the record.

But the provision appears to be a long-in-the-works change that was just waiting for the right moment to be attached to legislation.
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But SMC's survey found that extending 1099s just to services purchased from corporations would push that number to at least 200 filings per year for a typical small business -- adding an estimated $6,000 to the cost of preparing the average tax return. And that's without even accounting for the requirement that 1099s be filed for purchases of goods, a provision that Henschke's group didn't see coming when it conducted its survey last year.
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sounds like a good time to invest in some small biz accounting firms heh
 
fucking government. Imagine this:

- 1099 to your airline
- 1099 to the hotel
- 1099 to Affiliate Summit
- 1099 to the car rental company
- 1099 to Office Max
- 1099 to your Lawyer
- 1099 to your Accountant
- 1099 to Google AdWords
- 1099 to any restaurant you go to while in Vegas or NYC for ASE/ASW
- 1099 to your utility company
- 1099 to your office landlord
- 1099 to Verizon/AT&T/Sprint

fuuuuuuck, time to move
 
I'm going to 1099 everyone out of protest just to grab every single deduction and create such a huge fucking headache that it propels people into action when this goes into effect.
 
I'm fairly certain this is going to be over turned before it goes into effect based on talking to some long time accountants.

I sure hope it does...
 
I remember reading about Mike Filsaime having to pay over 1.5 million in tax $$ after not giving 1099's to his affiliates, along with some extra money for paying the fees late. so i am assuming you are referring to him.
 
crossfittn said:
Yea aren't we required to pay income tax to the IRS for 10 years after we renounce our citizenship, or they send people after us?
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Well, this is your personal income tax. But if you open a business entity in another country I'm assuming the IRS has no authority over it, right?
 
Bombastic said:
Well, this is your personal income tax. But if you open a business entity in another country I'm assuming the IRS has no authority over it, right?
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your physical body must buy bread at the cornerstone in -let's say- Michigan -- unless you fancy Belize return-trips every week? so, somehow, some way, your money will still have to finds its way to your your/an us bank account.

#1 catch-22 of 'offshore' banking

it's sort of reachable in europe... i've read news on germans/franks commuting back/forth from switzerland with trunks full of cash every other week... not sure how true or not, but it's cited often in central-west eu irs news.
 
miketpowell said:
I'm fairly certain this is going to be over turned before it goes into effect based on talking to some long time accountants.

I sure hope it does...
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god i hope so, this would be a fucking nightmare like i cant even believe.
 
But SMC's survey found that extending 1099s just to services purchased from corporations would push that number to at least 200 filings per year for a typical small business -- adding an estimated $6,000 to the cost of preparing the average tax return. And that's without even accounting for the requirement that 1099s be filed for purchases of goods, a provision that Henschke's group didn't see coming when it conducted its survey last year.


Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010



fuck this shit, seriously
 
The massive expansion of requirements for businesses to file 1099 tax forms that was hidden in the 2,409-page health reform bill took many by surprise when it came to light last month.
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What does this have to do with the health care bill? No wonder the thing is so long. These people must not even know the things they are signing by passing it.
 
papajohn56 said:
I'm going to 1099 everyone out of protest just to grab every single deduction and create such a huge fucking headache that it propels people into action when this goes into effect.
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It may be a huge fist up the ass of small business owners courtesy of some scumbag politician but the friction this will cause makes me think it could be an opportunity. Think subscription site aggregating the most common tax id #s of businesses you would need to submit for, and if a business isn't listed you can outsource the lookup and add it to your database. Having the most common 80% of ids would make it a convenience and being able to track down the uncommon 20% would make it crucial.

Crap, now I've got another project to add to my list.
 
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