Register free!

The Green Industry's Resource Center


Reply
 
Thread Tools   Display Modes
  #1  
Old 05-02-2010, 08:49 AM
Richard Martin's Avatar
Richard Martin Richard Martin is offline
LawnSite Fanatic
 
Join Date: Mar 2000
Location: Greenville, NC
Posts: 14,552
Doing commercial accounts? You'd better read this!

A little blurb was added to the Health Care Bill. It was intended to help pay the cost of the program.

1099 Mandate From Hell Slipped into Health Bill

The CATO Organization is noting Costly IRS Mandate Slipped into Health Bill


In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules...

Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, thatís a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.

Tax CPA Chris Hesse of LeMaster Daniels tells me:
Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.
The Air Conditioner Contractors of America said:
The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.

In order to file all these 1099s, youíll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments.


http://globaleconomicanalysis.blogspot.com/
__________________
Serving Greenville, Winterville and Ayden NC



Reply With Quote
  #2  
Old 05-02-2010, 09:57 AM
topsites topsites is offline
LawnSite Fanatic
 
Join Date: Mar 2005
Location: Richmond Virginia
Posts: 21,677
Pajamas Media?

Heck I can write news like that!

Guess I'm not the only one anymore.
Reply With Quote
  #3  
Old 05-02-2010, 10:53 AM
rjh4758 rjh4758 is offline
LawnSite Member
 
Join Date: Nov 2008
Location: south central Oklahoma
Posts: 220
Every time we buy a mower off craigslist that is over $600 we will have to send a 1099 to the seller? WOW this should get fun because no one will want sell anything private to us anymore because they will have to claim it on their taxes. I guess no 1099 no deduction off you taxes either.

Not sure how this will work with fuel. I buy over $600 in fuel but not at once but over the year. Imagine the look on a tellers face when you ask for a receipt and a 1099.

Last edited by rjh4758; 05-02-2010 at 10:58 AM.
Reply With Quote
  #4  
Old 05-02-2010, 01:36 PM
Richard Martin's Avatar
Richard Martin Richard Martin is offline
LawnSite Fanatic
 
Join Date: Mar 2000
Location: Greenville, NC
Posts: 14,552
Quote:
Originally Posted by topsites View Post
Pajamas Media?

Heck I can write news like that!

Guess I'm not the only one anymore.
Google it Chucklehead. It's real.
__________________
Serving Greenville, Winterville and Ayden NC



Reply With Quote
  #5  
Old 05-02-2010, 02:19 PM
Richard Martin's Avatar
Richard Martin Richard Martin is offline
LawnSite Fanatic
 
Join Date: Mar 2000
Location: Greenville, NC
Posts: 14,552
Nevermind. The admins moved this post to some obscure part of Lawnsite. No one will ever see it now.

Unsubscribing.
__________________
Serving Greenville, Winterville and Ayden NC



Reply With Quote
  #6  
Old 07-19-2010, 06:51 AM
Richard Martin's Avatar
Richard Martin Richard Martin is offline
LawnSite Fanatic
 
Join Date: Mar 2000
Location: Greenville, NC
Posts: 14,552
There is an attempt to repeal this part of the bill. It is HR 5141. It's not looking too good for repeal though. You can read about it here. http://www.govtrack.us/congress/bill.xpd?bill=h111-5141
__________________
Serving Greenville, Winterville and Ayden NC



Reply With Quote
  #7  
Old 07-19-2010, 07:43 AM
JB1's Avatar
JB1 JB1 is online now
LawnSite Fanatic
 
Join Date: Feb 2000
Location: From the hills of beautiful Southern Indiana
Posts: 5,845
we sure do like to bury stuff in paperwork in this country.
__________________
Reply With Quote
  #8  
Old 07-19-2010, 10:39 AM
Frontier-Lawn's Avatar
Frontier-Lawn Frontier-Lawn is offline
LawnSite Silver Member
 
Join Date: Mar 2004
Location: North Port, Florida
Posts: 2,869
Quote:
Originally Posted by Richard Martin View Post
A little blurb was added to the Health Care Bill. It was intended to help pay the cost of the program.

1099 Mandate From Hell Slipped into Health Bill

The CATO Organization is noting Costly IRS Mandate Slipped into Health Bill


In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules...

Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, thatís a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.

Tax CPA Chris Hesse of LeMaster Daniels tells me:
Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.
The Air Conditioner Contractors of America said:
The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.

In order to file all these 1099s, youíll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments.


http://globaleconomicanalysis.blogspot.com/
how to get around it, buy it personaly and rent it back to the company for $450 per month problem solved
Reply With Quote
  #9  
Old 07-19-2010, 11:06 AM
jsf343 jsf343 is offline
LawnSite Bronze Member
 
Join Date: Apr 2005
Location: Portland,Oregon
Posts: 1,751
hope and change people.

another large government footprint right across your back. It is too bad because this is going to be one big nightmare for any business.
Reply With Quote
  #10  
Old 07-19-2010, 12:41 PM
lilweeds lilweeds is offline
LawnSite Senior Member
 
Join Date: Feb 2006
Location: Blandon, Pa
Posts: 596
All the more reason we need to VOTE in November.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 04:06 AM.

Page generated in 0.10503 seconds with 7 queries