Repeal of 1099 provision

[Davc]

When asked at a CSEA Super what our local industry was I told the lady we used to be a timber community but now we stockpile Californians waiting to die.

[veritas]

Amen

53.1%


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Oregon is a national park.

[solomon]

There seems to be a mixing of apples and oranges regarding what probably will be repealed. Parts of three different laws have been discussed under the original topic. To summarize:

Public Law 110-289 Section 3091 addresses the 1099-K reporting to which final regulations have been issued under TD 9496.

Public Law 111-148 Section 9006 addresses the expansion of 1099-MISC reporting to include corporations and sale of certain property.

Public Law 111-240 Section 2101 addresses expansion of 1099-MISC reporting to include a rental as a trade or business.

The one most likely to be repealed (currently S 3946) will be Public Law 111-148 Section 9006.

[Snaggletoof]

Shysters??

C'mon Dave. How do we know as judge and jury that a corporation is a shyster?

[Snaggletoof]

Umatilla Dump

Good grief!! I only thought they owned the national forest and the Umatilla Dump.

Is over half of your state in a national forest?

[Davc]

Payments to corporations have previously been excluded. so if you paid an attorney who was part of a professional corporation, you did not have to send that corporation a 1099-MISC.

That's been wrong for several years now. Shyster's get 1099s even if incorporated.

[Davc]

Sell or give back the other half of my state that the feds own.

53.1%


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[PIGLEE]

I was confused about the timing. But I found on page 16 in "The Tax Review Book" for The Tax Book.

"Effective for payments made after december 31, 2011......."

Then at the bottom of the same page it says for Rental Property Activities the effective date is for payments made after December 31, 2010.

So we need to tell our clients with rentals they need to keep records so at the end of the year we need to do 1099"s for them. But it looks like this applies to only people that provide a service for them (on page 17).

[MRTAX4EA]

1099 K Reporting

The draft form breaks the reporting by month...

However, the earlier points are well taken!

[luke]

a bill was introduced

this week by Max Baucus(?) to repeal new 1009 requirements and Pres was "quoted" as saying it seemed like it might be too cumbsersome for "small" businesses to comply?

[luke]

After 2011 ?

"Increased Reporting on Form 1099-MISC
Form 1099-MISC is used to report payments made to independent contractors if annual payments are more than $600. Payments to corporations have previously been excluded. so if you paid an attorney who was part of a professional corporation, you did not have to send that corporation a 1099-MISC. A provision on the Health Care Reform bill eliminates the exception. And you will probably have to withhold tax on those payments to contractors, starting in 2012.

According to Thomson-Reuters:

The corporate exception is ending and, with few exceptions, all corporations will need to be reported on Form 1099-Misc for payments made after December 31, 2011.
New procedures will be required for reportable corporations, property, and gross proceeds based on current legislative action.
Payments for property (goods) will need to be reported on the 1099-MISC if at or above the familiar $600 annual payment threshold. These changes are effective for all payments made after December 31, 2011. "

[Bees Knees]

Purpose of law

Congress knows that W-2 income reporting compliance is just about 100%, and that compliance for income not reported on a W-2, 1099, etc. is about 70%. It doesn't take a rocket scientist to understand that if all income transactions were reported to IRS on a W-2 or 1099, income reporting compliance would improve.

These are facts, not speculation. Of course, sending a 1099 to Office Max or Home Depot will probably have little effect on income reporting compliance. However, giving that local Chinese restaurant or Auto Repair Shop a 1099 for all of those business lunches and oil changes may in fact improve income reporting compliance.

[JohnH]

If the client uses QuickBooks, it won't be very hard to run the reports. The capability to produce the 1099's is already there. Just check the vendors as "1099 eligible" and then filter the report by dollar threshhold, payment method and vendor. (Assuming of course that Congress doesn't repeal this nonsense).

[Lion]

2012?

I've been postponing reviewing to December, but from memory if 2012 is the year to send Forms 1099, then 2011 is the year that is tracked. No?

At least one of my clients pays by CC if in the store or online, but pays by check when he receives an invoice in the mail -- both those methods for Staples and other vendors. Also, isn't the exception for credit cards only for AmEx/VISA/MC/Discover/PayPal and not for store charges? So, my clients that have a charge account at Fairfield Stationers will have to track when they charge on their VISA vs. when they use the store account?

[joanmcq]

I too use a credit card for nearly all my purchases, except for my CPE meetings and a large (for me) advertisement. Since I have an Office Depot rewards card, as well as a biz Discover card that gives me 5% cash back on office supplies, I see no reason to pay cash. I think the only time I have was to buy a $5 receipt book for my rentals. Who goes to an Office Depot and writes a check? C'mon folks, get real! Have you ever seen anyone write a check in a store in the last 5 years or so with the exception of an occasional senior in the grocery store? Anyone I pay by check, I always pay by check (ie the advertisement & ASWA meetings or my business license). And most, with the exception of the advertisement, are never over $600.