Many interpret the law to mean any buyer, of say, gold coins worth over $600 will have a 1099 filed reporting his purchase. But for sure, if you pay a babysitter just $20.00 every week to watch the kids for a couple of hours on Saturday night, you would have to file a 1099 on her.
Same thing for the kid who cuts your lawn and shovels the snow from your driveway. You'll have to 1099 him if you end up paying him on average $11.54 per week or more.
And yet, the Senate can't find it's way to repeal this nightmare.
Numimaster reports:
Congress recognized the problem after a clot of consumer complaints, and it headed for a showdown on the evening of Nov. 29 on the Senate floor. There were two competing measures, both of which would repeal the 1099 for corporations.
The U.S. Senate then failed to adopt language that would eliminate the requirement for businesses to report annual expenses to individual vendors in excess of $600. Some say the measure would have reduced U.S. tax revenue by more than $19 billion over the next decade. Two similar measures failed in September.
(Thanks2Lori)
EJP wrote: “But for sure, if you pay a babysitter just $20.00 every week to watch the kids for a couple of hours on Saturday night, you would have to file a 1099 on her.
ReplyDeleteSame thing for the kid who cuts your lawn and shovels the snow from your driveway. You'll have to 1099 him if you end up paying him on average $11.54 per week or more.”
This is incorrect (again; you have previously posted this disinformation).
Sec 9006 revises § 6041 to include payment for GOODS to another corporation. The current law only requires payment for SERVICES.
And much more importantly, it only pertains if you are in a BUSINESS, and are paying another CORPORATION.
Don’t take my word for it, see for yourself:
Sec 9006: http://www.gpo.gov/fdsys/pkg/PLAW-111publ148/html/PLAW-111publ148.htm
Sec 6041 : http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00006041----000-.html
You need to fire your tax advisor (or Lori) …
Thanks for the corretion and the link to the exact section of the healthcare bill.
ReplyDeleteIt is however not limited to corporations, but any business. Which means a lot of people who run part time businesses on the side will have to file these forms, including someone who owns one residential investment property and pays a kid at least $11.54 a week or more to cut lawns/shovel snow.
It's remains a bookeeping nightmare.
you wrote: "It is however not limited to corporations, but any business."
ReplyDeletewhich is what I emphasized above: "And much more importantly, it only pertains if you are in a BUSINESS"
and let's remember that a business is defined as an endeavor pursued for the purpose of making a profit (as opposed to a hobby)
you wrote: "It's remains a bookeeping nightmare."
Respectfully, you discourage critical thinking with this type of sentiment, and you enable the belief that a minor effort is too much for the average American. What's next, championing the idiot who can't (won't)read his two-page mortgage note but signs it anyway?
Don't be the whiner that Phil Gramm reviles.
You have the opportunity to be the voice of reason.
Now, as I've commented before, all that has to be done is add the name and address of the(incorporated) payee in your accounting program. ONCE.
At yr-end, it will spit out all your +$600 corporate payments from GM to Joe Schmoe (Inc.!) merely at the touch of a bottom. Nothing different than previously.
Seriously, this just isn't hard.
BUT, if this is a "nightmare" scenario, then I am available for hire to bring you sweet dreams...