Hi,
Joe's correct. It doesn't start until 2012. The IRS doesn't even want
this. They say they don't have enough people to handle approximately twenty
times the forms, and it's quite possible that they would spend more on the
labor to process the reporting than they would get back from better tax
compliance. It was a way for them to make the health care bill look cheaper
than it will actually wind up being. The 1099 expansion was part of the
health care bill, and they talk about the net total cost of the bill, so
this made it smaller when they were trying to sell it to the public.
Thanks!
Mike
On Wed, Sep 22, 2010 at 2:36 PM, Joe O <orabona_joseph@dwc.edu> wrote:
>
>
> This doesn't start for a while. Starts with purchases made in 2012. We've
> got some time still. By the time this is supposed to have started it will
> have either been repealed or severely modified.
>
>
> --- In artshow_photo@yahoogroups.com <artshow_photo%40yahoogroups.com>,
> "Victoria L. Herring" <victoria@...> wrote:
> >
> > I checked with my CPA's office and heard back.
> >
> >
> > Regarding the 1099's, yes there is new law in 2010.
> > 1) Old laws didn't require incorporated businesses
> > except for legal fees to receive 1099's. New law - ALL companies
> > including incorporated businesses are to receive 1099's if paid more
> > than $600.00.
> > 2) Old law, if services could be separated from
> > materials and supplies purchased, only a 1099 was required for the
> > services rendered. New law ALL services AND materials are to be
> > reported on 1099's.
> >
> > The IRS is attempting to track the money flow for all businesses to
> > make sure that the income is being reported completely. Bad news, it
> > is going to be a 1099 nightmare to obtain the required TINs and
> > produce all the required 1099's.
> > As the end of the year gets closer and the 1099's are due, I hope
> > that there will be some adjustments to the requirements. I would
> > recommend that you get started with the W-9's trying to obtain Id
> > numbers from your major suppliers.
> >
> > Fortunately I record everything in Quickbooks and can [probably] spit
> > out a report of all vendors who whom I have paid a total of 600+ this
> > year....at least I hope so
> >
> > --
> > Victoria L. Herring, Gallery: http://gallery.journeyzing.com/
> > [images, ordering site]; Blogs: http://blog.journeyzing.com [JZ];
> > http://www.herringlaw.com [lawfirm]; Chicago Photo Forum Int'l. Comp.
> > Award of Excellence, 2010 [http://www.chicagophotoforum.org];
> >
>
>
>
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