What are the new rules if any for issuing 1099's for year 2010. I understand that at some point we will need to issue a 1099 for any purchase or payment of $600 or more regardless of business classification of recepient. Who's got all the answers?
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IRS hasn't come out with any clarifications as to procedures yet. They are still studying this issue. .. uh.. the problem.
one clarification in what you said. 1099's will be issued for all aggregated payments during the affected year, and not just for any transaction meeting the criteria.ChEAr$,
Harlan Lunsford, EA n LA -
And if the republicans get the majority in congress after the election they plan to pull this lawBelieve nothing you have not personally researched and verified.Comment
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No change for 1099's for 2010
The major change regarding issuing 1099's to just about everyone is in 2012.
There is too much time between now and then and I expect there will be some changes, once the trash is thrown out in November.Jiggers, EAComment
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I must
say that I will contact my representatives and urge them NOT to repeal the regulations on 1099s. There is so much underground income in this country it is crazy. If everyone reported and paid their fair share we all would pay less.
And this is coming from a very conservative, VERY rednecked, Republican!!!!!!AJ, EAComment
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I agree, but..
I would like to see a clarification about issuing 1099's to your local utilities, telephone companies, cell phone companies, insurance companies, etc.
Also a clarification relating to a business that has an office in home on their return. Do they have to issue a 1099 for the business % of the use or the total amount of the payment?
I definitely would like to see 1099's issued by the livestock commission companies where all the farmers sell their cattle. And farmers issuing 1099's to other farmers for buying hay and cattle. I really believe that there is a massive amount of income not reported by farmers.
Of course this creates a mess in trying to determine what to include or exclude!Jiggers, EAComment
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1099s
Flooding the IRS with 1099s may do the IRS more harm than good. They will have so many they will be unable to process them all. Even if filed electronically it would probably overload their computers. A lot of very small contractors file one or two handwritten 1099s Now they may need to file dozens which should be job security for IRS people who have to input them.Comment
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And just how would they "process" them anyway? Let's say I buy $1,000 worth of stuff at Staples during the year. If it's paper to print tax returns on, I file a 1099-MISC. If it's paper towels for the kitchen and school supplies for the kids, I don't file a 1099-MISC. If I pay by credit card I don't file anything, but the West Bank of the Mississippi files a 1099-K. Unless Staples reports gross revenues less than the total of all of the millions of 1099-MISC and 1099-Ks they receive, all this paper shows nothing.Comment
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There are so many ways to get the underground there is no need to over burden small business or anyone else with this overbearing rule.
The IRS is already going after cash businesses and they already require a 1099 to anyone paid $600 a year that the rest of the regulation passed with the health bill is just redundant and confusing.
What we, as citizens, need to do is report those underground income people!Believe nothing you have not personally researched and verified.Comment
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Another good sign that common sense may yet prevail in this matter...
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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