Posted on 07/22/2010 7:57:40 AM PDT by jmaroneps37
My printer/scanner and my monitor both died two weeks ago and I had to buy new ones at Fry’s for $400. A couple more purchases and I’m over the $600. What a nightmare, I’m supposed to 1099 Fry’s? That would mean just about everyone who buys a computer and printer.
What about gasoline from my corneer AM/PM? What if I do business lunchs at the same restaurant regularly? Yikes, the insanity. If I buy $600 worth of gardening, tools, nuts and bolts from Home Depot over 50 yearly trips?
You don't understand the law. You have to issue a 1099 to anyone for whom you do in excess of $600 ANNUALLY over the sum of all transactions. Breaking it into smaller transactions doesn't make the sum of the transactions with one party smaller.
They will if you show up on their radar screen. It’s another way to keep the sheep in line. This is not a good thing because it leads to arbitrary and capricious enforcement of the law.
Imagine the IRS sending undercover agents into your business to see if you can be convinced to avoid reporting a $601.23 cash transaction.
Imagine the IRS going over every single last one of your 1099s if you dare to embarrass a member of the ruling class.
Meanwhile, the establishment’s friends like TurboTax Timmy will get a free pass no matter what they do.
Well, it could add to the required paperwork for gun-sales (how many guns and related equipment are $600+?)... but maybe I'm just being a little paranoid about my gun rights. (Not that I shouldn't be: My state constitution forbids state laws abridging the right of citizens to keep and bear arms... yet there is a state law prohibiting firearms on schools.)
I know I didn’t understand when I first glanced at the article, but I re-read it and I understand now, it’s the total amount of transactions for every vendor. - read my posts since then, but thanks for pointing out my mistake anyhow.
You are required to...
That is, unless your the Secretary of the Treasury. He’s been exempt from filing mandatory forms for the last 20 years. It’s a communist thing.
Not replace, mind you. A VAT will be in addition to all the other taxes we are saddled with.
This is going to be a nightmare for my husbands small business. Unfortunately, I am the one who does his 1099s.
The post office gets a bump, too, and I’m thinking they’re no more equipped to handle the increase than is the IRS.
We are run by a cadre of fools. PJ O’Rourke’s book title was never more appropriate than now: “Parliament of Whores”.
I haven't read the statute, but I think the $600.00 is cumulative. I also suggest that you read up on money laundering. The penalty for at temping to avoid reporting a transaction, by dividing it into several small transactions, is very harsh. I mean years in prison harsh.
Unfortunately that won’t work as it’s retailer based. As long as you spend more than $600 in a single place (not single item), you’ll need to waste time putting a 1099 together for that place.
The end result is people will focus all their purchases to a few outlets, killing small locally owned stores. Instead of going to the local hardware store people will go to the big stores so that they have to send only one 1099 to, say, Loew’s. It’s completely anti small business on both ends - more stupid paperwork, and encourages people to not give business to small businesses.
That won’t work because it is purchases in aggregate to a particular vendor per calender year, isn’t it. For instance, we will have to send a 1099 to Martin Tractor for the total amount of parts purchased from them in a year.
This is motivation to limit the number of vendors you use as much as possible. For instance, always purchase parts from the same vendor if possible.
>>It’s hard me to view this as good news...<<
I think that claim is made a little tongue in cheek. However, an underlying reason could be that because this is obviously impossible to pull off, it will be eliminated. Frankly, it is either that or our economy implodes.
I don’t think even “they” want that.
Nah, since you only need to send the forms in yearly just stuff them all into one of those flat-rate boxes and send it off.
Additionally, if you’re feeling mean, run them through a shredder before packing them; then point out that the submission process never actually said anything about submitting the full form. (After that, you can argue that the sum of all the parts, which you submitted, are exactly equal to the whole... and that the regulations said nothing about submitting the forms in-tact.)
We are rapidly approaching the point where a national strike by all small business people is the only way out.
You grew up in a country with a government.
You now live in the opposite.
Will you be free men, or will you be serfs?
The defect in this 1099 process is that it isn't tracking earned income. It is tracking a financial transaction of goods for money. That is a sales tax issue not an income tax issue.
When you call a carpet cleaning company, they charge a fee per room. You pay for that service. It is the provider of that service that should be responsible for parsing the money received into labor, materials and sales taxes, then determining what remains as taxable profit. The labor portion goes to the book keeper to become taxes and net pay to the employee. None of that should be foisted upon the person who called to have the carpets cleaned.
[I intend to file one for everyone I spend $600 a year on, utility companies, grocery stores, gas stations, clothing stores, etc.
Isn’t that what the law says you have to do?]
This provision doesn't apply to consumer purchases of firearms, whatever the price.
However, it apparently does apply to anyone selling firearms to a gunstore. If the aggregate of the sales go over $600 in a year to a single gunstore, then these sales must be reported on a 1099.
“killing small locally owned stores.”
BINGO!!!Fascism at its best.
We need to find the rock down in DC this crawled out from under...and in who’s office on the Hill it sits....
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