Announcement

Collapse
No announcement yet.

New 1099s

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    New 1099s

    Unless I'm misunderstanding this, it sounds like (for 2012) if we buy a computer or we pay phone service in excess of $600 for the year, then we have to send a 1099 to Office Max/AT&T (or whoever).

    According to this report they expect to raise $345 billion from new paper trails. It's been on hold since '07 waiting for the right bill to come along and so they stuck it in with Health Care (no one wants credit for this -- committee chairmen Baucus and Grassley refused to comment). It says the requirement that businesses file 1099s when they purchase goods took everyone by surprise. Amen to that.

    Starting next year and expanding in 2012, the IRS will use a blizzard of new 1099 forms to track down business revenue that currently flies under the radar.


    Of course this means lots of new work for us, but talk about government intrusion into your lives...

    ***Deleted the part about individual credit card statement/bank statement recaps going to IRS -- another article says IRS won't identify individual cardholders. Also, the above article says debit/credit card reporting is done by the 3rd party processors (VISA, etc.) who will have to send 1099s to retailers (or whoever) processing more than 200 payments a year totaling more than $20K. Guess they're trying to catch the small stores who don't turn anything in. Google "1099K" and take a gander. It's pretty detailed (by the month) and certainly nails 'em down on sales.
    Last edited by Black Bart; 05-22-2010, 08:50 AM.

    #2
    If this is true

    If this is true, and going to come to pass, then I hope that they will allow us to file on "plain paper" much like the W-2 forms and they do away with ordering the "red forms" or better yet, a provision to file electronically.



    Sandy

    Comment


      #3
      If this is true

      it will cover all the additional fica taxes I'm going to pay plus some.

      Comment


        #4
        Originally posted by veritas View Post
        it will cover all the additional fica taxes I'm going to pay plus some.
        LOL! Great minds think alike, veritas.
        ChEAr$,
        Harlan Lunsford, EA n LA

        Comment


          #5
          I'm with ST. Hope we don't need those red forms. Thank goodness for those wonderful software developers out there who will come up with a fine program for this.

          I'm wondering about reporting - those 1099-K forms are going include sales tax, tips, cash back - things that are not taxable income. Great. Nice job. How nice that the tax gap is closing. I bet the credit card processors are jumping for joy now that small businesses will start refusing to take credit cards. I can see it now for most restaurants - "Cash Only" signs popping up everywhere. I have a feeling that good old Cash is going to be back in style pretty soon.

          Comment


            #6
            Originally posted by BHoffman View Post
            I'm with ST. Hope we don't need those red forms. Thank goodness for those wonderful software developers out there who will come up with a fine program for this.

            I'm wondering about reporting - those 1099-K forms are going include sales tax, tips, cash back - things that are not taxable income. Great. Nice job. How nice that the tax gap is closing. I bet the credit card processors are jumping for joy now that small businesses will start refusing to take credit cards. I can see it now for most restaurants - "Cash Only" signs popping up everywhere. I have a feeling that good old Cash is going to be back in style pretty soon.
            Let's clarify something, This new 1099K form relates only to what's new to be reported
            for 2011, i.e. payments via credit cards. there will probably be some new 1099 form,
            say, 1099-I for purchases of I_ nventory, supplies, etc.

            Can you imagine first thing in 2012 going to post office and knowing you'll be spending
            more than$600 during the year, asking the window clerk for the USPS EIN? LOL
            ChEAr$,
            Harlan Lunsford, EA n LA

            Comment


              #7
              filing 1099 forms

              Two or three years ago I began filing the IRS 1099 forms electronically. Why? No more red forms to deal with.

              Comment


                #8
                Sounds okay, but

                Originally posted by Kram BergGold View Post
                Two or three years ago I began filing the IRS 1099 forms electronically. Why? No more red forms to deal with.
                how do you go about doing that?

                Comment


                  #9
                  Filing Information Returns Electronically (FIRE)



                  Hi Bart - above is a link. You need software that allows you to enter and transmit the data. Drake includes a free write-up program that has it.

                  Here is a list of other providers:

                  Comment


                    #10
                    Thanx Hoff,

                    Originally posted by BHoffman View Post
                    http://www.irs.gov/taxpros/providers...=98045,00.html

                    Hi Bart - above is a link. You need software that allows you to enter and transmit the data. Drake includes a free write-up program that has it.

                    Here is a list of other providers:

                    http://www.irs.gov/efile/lists/0,,id=100422,00.html
                    That 1099 Express looks pretty good and prices are not too bad ($199 new & $99 renew).

                    Do we have to file some sort of form with IRS or get a disclosure form signed to authorize us to send a client's information to the software people?

                    Comment


                      #11
                      Been awhile since I started using this and I don't remember having to do anything special with IRS or the client as far as disclosure or registering. I'm sure the software provider will be able to answer questions.

                      Comment

                      Working...
                      X