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Old 07-12-2010, 06:51 AM
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FIMCO-MEISTER FIMCO-MEISTER is offline
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Sneaky them Dem. buzzards

The things arrogant WA DC elitists come up with. Snuck in to the Health Care Bill. The CC companies must be thrilled. Another bone to the Corporations that can afford this stuff while the small business has its cost driven up disproportionately.


http://money.cnn.com/2010/07/09/smal...rs_1099_flood/


The new regulations, which kick in at the start of 2012, require any taxpayer with business income to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services that year. That promises to launch a fusillade of new paperwork: An estimated 40 million taxpayers will be subject to the requirement, including 26 million who run sole proprietorships, according to a report released this week by National Taxpayer Advocate Nina Olson.

The expanded reporting requirements, which Congress slipped into the landmark health care reform bill passed in March, are an attempt to create a paper trail of 1099s exposing business-to-business payments that might otherwise stay off the radar.

The IRS plans to exempt transactions made through credit and debit cards. A separate reporting requirement kicks in next year that will cover card transactions and help the IRS spot unreported payments made through those channels, "so there is no need for businesses to report them as well," Shulman said. "Whenever a business uses a credit or debit card, there will be no new burden under the new law."

Henschke foresees another unintended consequence of the new reporting provisions: that in order to cut down on tax forms to be filed, businesses will trim the number of vendors they do business with. "I've actually heard businesses talking about consolidating their purchases, going from 150, 200 vendors, down to less than 100," he said. "That will most certainly lead to some small businesses being swept under the door."

But the cost of that paper trail could swamp the small companies, sole proprietors freelancers forced to generate it. Pennsylvania business networking organization SMC Business Councils surveyed its members and found that they currently average 10 filings a year of 1099 forms. The new rules would push that average to more than 200 filings per year for a typical small business, the industry group estimates.
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Old 07-12-2010, 10:26 AM
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DanaMac DanaMac is online now
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More paperwork for me. Great. Just great. Can't be productive when we're sitting in the office.

Oh wait, that's what I want anyway. Nice cool office, no field work.
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Old 07-12-2010, 11:39 AM
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FIMCO-MEISTER FIMCO-MEISTER is offline
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Not sure I want an environment that encourages CC transactions to avoid paperwork. 2-3% lost. Office time is down time in my book. More loss. Have fewer vendors to lessen reporting. The big get bigger and the small guy can't compete.

I can assure you this was pushed by CC companies and the Corporatists. big companies don't care how much paperwork the govt causes because they know it drives small companies under and discourages new competitors.

Attitudes are more important than facts. The capitalists are sitting on the sideline with 1.6 trillion dollars they refuse to put to work as long as they feel the sentiment in WA DC is anti-business.
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Old 07-12-2010, 12:21 PM
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EagleLandscape EagleLandscape is offline
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super... our cost of doing business just increased. you know who will end up paying for it and suffering the most? not me the greedy business owner that makes all of the crazy money.... but my middle class and lower class customers whom i will be forced to pass the cost increase along to.

so much for CHANGE
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