to all you business owners..... new tax laws coming

[Vedubin01]

Hidden in the health care bill a new set of laws set by the IRS that is going to effect business owners and the way people do business. Soon you will be told how to wipe your ass, be taxed for the use of paper, and charged with a carbon tax.

starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to –– even if it's a giant retailer like Staples or Best Buy –– at the time of the transaction, or else facing IRS penalties.

http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/

[Massive Lee]

If a company invoices you. Isn't there already some type of tax number on the invoice to legitimize the sale tax it charged you? How different is it from before then?

Also this: "... just one piece of a years-long legislative stealth campaign to create ways for the federal government to track down unreported income."

Isn't "unreported income" a form of fiscal evasion? What's wrong with tracking down people who are not paying their share of taxes?

[z31maniac]

^It's basically adding millions of pieces of paper to keep track of.

[matt]

I can't think of a legitimate business that this will be a problem for.

[Massive Lee]

^It's basically adding millions of pieces of paper to keep track of.

I think the extra burden of work will only be for the IRS auditor. If all invoices have a legitimate tax number printed on it, it is not adding any extra document. This system is adopted world wide. If the auditor finds an invoice with no tax ID, most likely it is a business that doesn't pay taxes but may well charge you for them. Bingo.

Honest businesses won't have to worry.

[Kershaw]

Soon you will be told how to wipe your ass and be taxed for the use of paper and charged with a carbon tax.

HAHAHAHAHAH!

funniest thing i've read all day.

sensationalism at its best.

[Vedubin01]

If a company invoices you. Isn't there already some type of tax number on the invoice to legitimize the sale tax it charged you? How different is it from before then?

Lee, currently anyone that does business in the states that is an LLC or an INC. is responsible by itself for reporting anything over $600. Not the other company doing business. So if my company did business with your company here in the states, I spend more than $600 in a year. I am now required to file a 1099 misc on you for doing business. Currently you are responsible to claim that transaction.

Also the way I read this, if I wanted to buy a TV from Best Buy over $600 (or multiple transactions that total over $600 a year) for my business I will have to have a 1099 Misc filled out at the time of the sale. This will also create more paperwork for businesses that does a lot of B2B.

Soon businesses will starting dealing with Cash and Money orders to skate this. Or some sort of Barter system. Goods and labor for goods and labor.

[matt]

That will not happen. The costs of using cash to do business are outrageous.

Anyone who's already paying taxes properly will not be inconvenienced by this very much.

For companies that currently report all their credit card and Paypal sales to the IRS, the 1099-K requirement will have little impact. All the paperwork will be done by the bank or payment processing service, and business owners will simply receive a form at the end of the year listing their total receipts.

The part about needing a 1099 for expenses over $600 sounds like bullshit. B2B transactions that go through CC will get reported by whoever processes the credit card transaction, not the end user.

[Vedubin01]

current business owner?

In my business I receive about 60 percent of my income via cash... If I wanted to I could keep a lot of that off the books. But I try to run my business on the up and up.

Bars, clubs, vending companies, that deal with a lot of cash will also start keeping more off the books.

Credit card companies currently do not report to the IRS directly on transactions. But its in the works as well.

[mrsleeve]

Oh goody more bureaucratic red tape and constraints on the evil business, that will do nothing but increase operating costs, and there for passed on to the end consumer.

Had to pass it to find out what was in it No fucking wonder

[joshh]

The point is Obama is trying whatever he can to punish you for being an American business owner.

[mar1t1me]

^^^it looks to me more like he's trying to drum up more money by going after people who lie to the IRS.

Besides, it's really a paperwork thing. That's what accountants are for.....

[joshh]

^^^Yeah because the Government is so efficient their going to make a ton more money by making it more complicated and having to hire more people.
I have an idea, why don't we hire a Government accountant for every business in America. That way we can make sure we get EVERY FUCKING PENNY!