SMRBAP
Supportive Member
I did find that this was repealed - read on if you want but it's seemingly a dead issue. But it may make some folks look a little closer at the candidates next time they start marking up those ballots.....
I have heard there is a chance this changes, but as of the moment - it stands.
You can all thank Obama care for this. Its starts 2012, so you all better get in gear and start getting ready for it, or the day you have to pay your 2012 taxes could be a really really bad day.
Section 9006 of the healthcare bill, a few sentences in the over 2400 page document, requires you to file a 1099 for ANY and EVERY vendor you spend over $600, services or tangible goods, or you lose the write off.
The idea is that that using 1099 forms to capture potential unreported income will generate more government revenue and help offset the cost of the health bill. I don't know what bright bulb thought this one up - but it is going to add a RIDICULOUS amount of undue burned on every person and company in business.
All you disty's out there better get ready for it too, and return those w-9's as they come in from your custy's - or you are going to have some very angry customers. And cleaners, get ready to get w-9's and return them for any customer intending to write your services off that spends more than $600 a year with you.
You have to w-9 and then 1099 individuals/sole proprietors, and even corporations.
If you spend more than $600 with them in a year w-9 & 1099 them - I'd suggest you start sending w-9's now, because so far for me, getting them returned has been like pulling teeth.
Send to anyone you spend more than $600 a year with;
any gas station, advertising agency/service, staples, office depot, lowes, home depot, your disty's, your landlord, your water company, electric company, costco, .......
My list is over 100 so far - I have sent 100 w-9's, 50 days later, not gotten one back yet.
From what I have read, they may change it a bit so that purchases on a credit card (debit cards will not count, must be a traditional CC) can be exempt from having to file a 1099 on >$600/yr.
The real problem (as I am finding out) lies in having your vendors return the w-9 you must send them in order to 1099 them, so you can have the write off. Like every gas station you use - you are going to have to do legwork just to find out where to send the w-9's (so we'll only be using one rather than whichever is close at the time of need).
In other news -
Accountants across the US anticipate having record profits in 2012. . . . . .
I have heard there is a chance this changes, but as of the moment - it stands.
You can all thank Obama care for this. Its starts 2012, so you all better get in gear and start getting ready for it, or the day you have to pay your 2012 taxes could be a really really bad day.
Section 9006 of the healthcare bill, a few sentences in the over 2400 page document, requires you to file a 1099 for ANY and EVERY vendor you spend over $600, services or tangible goods, or you lose the write off.
The idea is that that using 1099 forms to capture potential unreported income will generate more government revenue and help offset the cost of the health bill. I don't know what bright bulb thought this one up - but it is going to add a RIDICULOUS amount of undue burned on every person and company in business.
All you disty's out there better get ready for it too, and return those w-9's as they come in from your custy's - or you are going to have some very angry customers. And cleaners, get ready to get w-9's and return them for any customer intending to write your services off that spends more than $600 a year with you.
You have to w-9 and then 1099 individuals/sole proprietors, and even corporations.
If you spend more than $600 with them in a year w-9 & 1099 them - I'd suggest you start sending w-9's now, because so far for me, getting them returned has been like pulling teeth.
Send to anyone you spend more than $600 a year with;
any gas station, advertising agency/service, staples, office depot, lowes, home depot, your disty's, your landlord, your water company, electric company, costco, .......
My list is over 100 so far - I have sent 100 w-9's, 50 days later, not gotten one back yet.
From what I have read, they may change it a bit so that purchases on a credit card (debit cards will not count, must be a traditional CC) can be exempt from having to file a 1099 on >$600/yr.
The real problem (as I am finding out) lies in having your vendors return the w-9 you must send them in order to 1099 them, so you can have the write off. Like every gas station you use - you are going to have to do legwork just to find out where to send the w-9's (so we'll only be using one rather than whichever is close at the time of need).
In other news -
Accountants across the US anticipate having record profits in 2012. . . . . .
