From my understanding, legislation has passed but could change, to make 1099 reporting for 2011 MUCH more difficult. I'm understanding it as even providers of goods are eligible now. In order to prepare for this, I'm thinking we must start early when we write checks or something, but then just sending out a bunch of W-9's may be easier???? How do the rest of you plan to do this?
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I'm positive that I read SOMEWHERE about a withholding requirement if you expect to pay more than a certain amount total for 2011, but when I go to the IRS website for details, I can't find anything!! Anyone know where to look? -
What I'm seeing online says these new regs (thanks to healthcare) don't take effect for any payments made before 2012 but the advice is to prepare now for this MONUMENTAL task, corps are included too! Sorry for the earlier inaccuarate post. Any plans?Comment
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But.............
There is a possibility that this provision of the law providing for 1099's for goods/merchandise/etc. may be repealed.Originally posted by Super Mom View Post
Obama mentioned this in his State of the Union message the other day, a couple of our professional organizations are trying to get this appealed also.
In the old Congress, before 1/1/11, I think there were two attempts to repeal. Both were rejected.
I think there is a problem in that a large of amount of new revenue for the US was put in the budget for the taxes that would be generated by this. They haven't figured out how to replace those taxes if they repeal it.Jiggers, EAComment
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My opinion
From everything I have read, you should only concern yourself with the need to report 1099 forms for year 2011 by landlords. The provisions for businesses will be repealed or substantially modified.Comment
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That's what I was thinking, why do all that work when it'll probably be repealed or modified. I just hate to be behind, I was wondering how others in the industry felt. Thanks!!!Comment
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Originally posted by Kram BergGold View Post
That is the way I understand it, I informed all my people that have rentals. Have only had one person ask any questions. I thought it would be a big issue. Will talk more with them when they come in. Most of my people have one rental and do most of the work themselves.
I do have one question. If they hire someone like a real estate agency to handle their rental, who is responsible for the 1099's, The Realtors, or the person who owns the rental. I would think the owner would give a 1099 to the Realtor for the complete amount they keep (wether is is for commission or repairs). What do you think?Comment
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