Latest news on 1099 Forms?

[S T]

I agree with your strategy

But then that raises another question

If the owner of the Rental Property is an individual or a husband/wife, let's say and is a Schedule E tax filer attached to a Form 1040, and you obtain an EIN# for 1099 Reporting purposes, how is that going to match the Schedule E attached to the form 1040 which is being reported under the owner's SSN#? Won't the IRS be looking for some type of form 1065 or 1120S or 1120?

Same issue with a Schedule C - Sole Proprietor attached to Form 1040 - but 1099 forms issued to the EIN# of the Biz - My Biz client has an EIN # for payroll (must have) can I have my Biz client fill in the W-9 with EIN# as a sole proprietor? That is not what the instructions say

Another Example: Husband and wife own rental property - they are asked for a W-9 form - they file as individuals as a married joint return filing Schedule E - they have to report under a primary SSN# usually the husband SSN - if they apply for a EIN# as a partnership - then IRS will be looking for a partnership return

As a biz owner, I have had an EIN# for my biz - some years I have an employee and some years not - as a tax preparer I have always used the EIN# and my PTIN# on the returns rather than my SSN, but I am listed as a sole proprietor so IRS is not looking for a form 1065 or other return, just my Sched C - All of my 1099's are issued in my SSN# not my EIN #

Such conflict Maybe IRS will give all these rental people and Sole Prop Biz Owners the option and a new W-9 will be produced, so we don't have our SSN# floating around.

More confusion?

Sandy

[mactoolsix]

EIN number

We have advised all our rental property owners to get an EIN. They won't need it until they fill out the 1099's next year, but who wants to send out their SS# (required on the 1099) to everyone they may have dealt with last year?

[taxea]

I am advising my rental clients to obtain W-9 prior to purchase/hire and also hoping this law is pulled soon.
As for the business clients it doesn't go into effect until 2012 so I am not going to confuse them now. Who knows, I may not have to deal with it at all by the end of the year.

[Gretel]

Even though my hope that the whole reporting deal gets revised and approached again with more common sense, I still want to wait maybe another 6 months.

I am advising all my biz clients of the situation and also of the rush that could happen if they wait too long. I am suggesting to wait until September unless Congress has done something to ease the situation.

[S T]

What is everyone doing on their business clients regarding the 1099 reporting for 2012 for tax year 2011?

Example:
I have a small biz client that is a schedule C and is already receiving requests for completion of W-9 form from larger business or corporate clients of his?

His credit card companies for credit card receipts (processing client's payments) and also credit card charges have requested W-9 forms.

Should he also be requesting W-9 forms from his vendors and accounts that he pays for goods/services?

I am advising all of my Rental/Landlord Clients - that is a non issue

Just wondering about the business clients?

Thanks,

Sandy