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  1. 31 Oct '10 14:47
    http://www.investigatingblog.org/archives/637/big-changes-to-irs-form-1099-in-2011/

    The 1099 is a form most commonly associated with freelancers and consultants, not businesses and employees, however, that could soon all change. With just a few short sentences in the 2010 health care act, the IRS form 1099 just became a whole lot more important.

    The New Purpose of the 1099

    The 1099 has practically been re-purposed from top to bottom thanks to health care reform legislation. Starting in 2011, the 1099 will function as a tax form for ALL businesses to business transactions of over $600. Yes, for each and every b2b sale or combination of sales worth more than $600, each party will have to collect information about the other and submit a 1099 to both the parties involved and the IRS. So, if your business were to purchase a laptop from WalMart for $600, you would have to fill out a 1099 form. Sound ridiculous? I think so too.

    Let's try to put this new law into perspective. Let's say you own a hair salon in which you vend both services and products. In this hair salon you have probably 500 different hair, nail, and skin products from 50+ different vendors. For each vendor that sells you more than $600, you will have to fill out another. Should you buy ink, staples, pens, paper, etc, to stock your business you will fill out even more 1099's. Then, when paying rent to your landlord, you will have to give them another 1099. Can you see where this is going? EVery business of every size is soon to have a HUGE accounting nightmare. Can you imagine keeping all these records?

    Should business fail to get the proper paperwork in place, they cannot receive a payment. That's right. By law, businesses that do not get a tax identification number (TIN) or social security number (SSN) are REQUIRED to withhold the payment. Wow.

    This new law appears as though it was written soley for the purpose of slaughtering business and keeping new unestablished businesses from ever competing. Let's say you own a small business and are looking for a few thousand promotional pens. You could purchase from your usual supplier for $700, and you would not face any additional paperwork since you buy form them already. Or you could purchase from a new vendor for $690. Hmm, $10 to save yourself an accounting headache seems like a good deal. I can't imagine small businesses being able to handle this new bureaucratic onslaught very well. Have you taken a look at the tax code recently?

    This did not happen overnight. The tax code does not grow to more than 2.5 million pages (including accompanying regulations) in one day. The land of oppurtunigy for small business is crumbling. It is a growing bureaucracy that is paying the way for the destruction of small business in America. I can only hope that this provision is repealed, otherwise, it is just one more chunk gone from the American Dream.
  2. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 15:10
    Originally posted by whodey
    http://www.investigatingblog.org/archives/637/big-changes-to-irs-form-1099-in-2011/

    The 1099 is a form most commonly associated with freelancers and consultants, not businesses and employees, however, that could soon all change. With just a few short sentences in the 2010 health care act, the IRS form 1099 just became a whole lot more important.

    The Ne ...[text shortened]... provision is repealed, otherwise, it is just one more chunk gone from the American Dream.
    Mountain out of a molehill. It takes a couple of minutes to generate a 1099 and it can be done at the end of a year when preparing your annual tax return. Exempting payments to corporations from 1099 requirements never made any sense anyway.
  3. 31 Oct '10 15:18
    Don't you have microsoft excel?
  4. 31 Oct '10 16:15
    Originally posted by no1marauder
    Mountain out of a molehill. It takes a couple of minutes to generate a 1099 and it can be done at the end of a year when preparing your annual tax return. Exempting payments to corporations from 1099 requirements never made any sense anyway.
    This from someone who obviously has no meaningful real-world experience whatsoever.

    Multiply the number of 1099s in the U.S. by the couple of minutes to produce each one. Then how much lost productivity are we talking about?

    That's known as opportunity cost. The cost of doing something productive with one's time as opposed to filling out paperwork for bureaucrats in Washington.

    Your lack of knowledge of the business world and the mechanics of it are truly pathetic. Like Obama, you're nothing but a useless theoretician with no real world experience to bring to the discussion.
  5. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 16:22
    Originally posted by TheBloop
    This from someone who obviously has no meaningful real-world experience whatsoever.

    Multiply the number of 1099s in the U.S. by the couple of minutes to produce each one. Then how much lost productivity are we talking about?

    That's known as opportunity cost. The cost of doing something productive with one's time as opposed to filling out paperwork ...[text shortened]... nothing but a useless theoretician with no real world experience to bring to the discussion.
    Unsurprisingly, you don't know what you are talking about. 1099s encourage tax compliance and only people who wish to cheat on their taxes have a big problem with the requirement. As already pointed out, they can be generated automatically using standard software. You probably never did any accounting or held a real job of any sort, so you wouldn't know this.
  6. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 16:25 / 1 edit
    Originally posted by whodey
    http://www.investigatingblog.org/archives/637/big-changes-to-irs-form-1099-in-2011/

    The 1099 is a form most commonly associated with freelancers and consultants, not businesses and employees, however, that could soon all change. With just a few short sentences in the 2010 health care act, the IRS form 1099 just became a whole lot more important.

    The Ne provision is repealed, otherwise, it is just one more chunk gone from the American Dream.
    whodey's cut and paste: Can you imagine keeping all these records?

    Every business of any size unless run by absolute incompetents keeps track of who and how much they have paid various vendors. This is an "accounting nightmare"?
  7. Donation bbarr
    Chief Justice
    31 Oct '10 17:53
    Originally posted by whodey
    http://www.investigatingblog.org/archives/637/big-changes-to-irs-form-1099-in-2011/

    The 1099 is a form most commonly associated with freelancers and consultants, not businesses and employees, however, that could soon all change. With just a few short sentences in the 2010 health care act, the IRS form 1099 just became a whole lot more important.

    The Ne ...[text shortened]... provision is repealed, otherwise, it is just one more chunk gone from the American Dream.
    A buddy of mine owns the Fremont Coffee Company, here in Seattle, and I help him run the place. We have a dozen employees (baristas, bakers, roaster) and gross about $400k a year. We will have to submit a grand total of eight (8!, OMFG!) 1099s at the end of the fiscal year. Fortunately, we have a computer (and a filing cabinet, our 'plan b', and are refusing to panic.
  8. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 17:56
    Originally posted by bbarr
    A buddy of mine owns the Fremont Coffee Company, here in Seattle, and I help him run the place. We have a dozen employees (baristas, bakers, roaster) and gross about $400k a year. We will have to submit a grand total of eight (8!, OMFG!) 1099s at the end of the fiscal year. Fortunately, we have a computer (and a filing cabinet, our 'plan b', and are refusing to panic.
    What an ACCOUNTING NIGHTMARE that will be!!
  9. Standard member telerion
    True X X Xian
    31 Oct '10 18:18
    Originally posted by no1marauder
    Unsurprisingly, you don't know what you are talking about. 1099s encourage tax compliance and only people who wish to cheat on their taxes have a big problem with the requirement. As already pointed out, they can be generated automatically using standard software. You probably never did any accounting or held a real job of any sort, so you wouldn't know this.
    If I remember correctly, TheBloop posted quite some time ago that his economics training was on par with a PhD because he worked for a Fortune 500 company.

    Please, Professor Bloop, tell us more about "opportunity cost."
  10. Donation bbarr
    Chief Justice
    31 Oct '10 20:05
    Originally posted by no1marauder
    What an ACCOUNTING NIGHTMARE that will be!!
    And the worst part is that each 1099 form is an entire 1/2 sheet of paper.
  11. 31 Oct '10 22:03 / 2 edits
    Originally posted by bbarr
    A buddy of mine owns the Fremont Coffee Company, here in Seattle, and I help him run the place. We have a dozen employees (baristas, bakers, roaster) and gross about $400k a year. We will have to submit a grand total of eight (8!, OMFG!) 1099s at the end of the fiscal year. Fortunately, we have a computer (and a filing cabinet, our 'plan b', and are refusing to panic.
    So you are saying that the bureaucratic nightmare of thousands of pages of legislation in Obamacare regarding the obligation the Freemont Coffee Company will not cost you anything? Are you suggesting that your bottom line will not be negatively impacted whatsoever? Of course, being in Seattle I realize that you and those around you are probably incapable of saying one negative thing about the federal government due to what is in the water you are drinking on the left coast, but come on. The more regulations and obligations the federal government imposes on us the harder it makes it for all of us.
  12. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 22:11
    Originally posted by bbarr
    And the worst part is that each 1099 form is an entire 1/2 sheet of paper.
    Such an ACCOUNTING NIGHTMARE will obviously lead to trillions of trees having to be destroyed. And the statist liberal socialists pretend they care about the environment!
  13. Subscriber no1marauder
    It's Nice to Be Nice
    31 Oct '10 22:13
    Originally posted by whodey
    So you are saying that the bureaucratic nightmare of thousands of pages of legislation in Obamacare regarding the obligation the Freemont Coffee Company will not cost you anything? Are you suggesting that your bottom line will not be negatively impacted whatsoever? Of course, being in Seattle I realize that you and those around you are probably incapable of ...[text shortened]... tions and obligations the federal government imposes on us the harder it makes it for all of us.
    Yup having affordable health insurance will certainly make it hard for tens of millions of people who are currently fortunate enough not to be so burdened.
  14. Donation bbarr
    Chief Justice
    31 Oct '10 23:23
    Originally posted by whodey
    So you are saying that the bureaucratic nightmare of thousands of pages of legislation in Obamacare regarding the obligation the Freemont Coffee Company will not cost you anything? Are you suggesting that your bottom line will not be negatively impacted whatsoever? Of course, being in Seattle I realize that you and those around you are probably incapable of ...[text shortened]... tions and obligations the federal government imposes on us the harder it makes it for all of us.
    It will take us about 30 minutes to complete the required 1099s, since we already have all the information on our invoices, and can just plug that information into tax software. We'll probably have a beer while we're filling in the forms. The horror!

    You can't remember me criticizing the current administration? Jeez, whodey, you haven't been paying attention. Obama is a centrist, and in the pocket of corporate power, just like most of his Democrat cronies. I am no friend of the current of administration.
  15. Donation bbarr
    Chief Justice
    31 Oct '10 23:24
    Originally posted by no1marauder
    Such an ACCOUNTING NIGHTMARE will obviously lead to trillions of trees having to be destroyed. And the statist liberal socialists pretend they care about the environment!
    It's hard to fill out the forms in the dark, but that's the only way we can avoid the roaming death panels.