Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Stealth IRS changes mean millions of new tax forms


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 05-24-2010, 09:13 AM
swstout's Avatar
swstout swstout is offline
Steve
 
Join Date: Jan 2009
Location: Canastota, NY
Age: 66
Posts: 1,082
Rep Power: 8
swstout is on a distinguished road
Default Stealth IRS changes mean millions of new tax forms

Stealth IRS changes mean millions of new tax forms

The result: A blizzard of new tax forms that the Internal Revenue Service will begin rolling out next year.

The new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards. Starting in 2011, financial firms that process credit or debit card payments will be required to send their clients, and the IRS, an annual form documenting the year's transactions.
The 1099 changes attached to the health care reform bill are another kettle of fish. These massively expand the requirements for filing the "1099-Misc" form, which companies use for recording payments to freelance workers and other individual service providers. Until now, payments to corporations have been exempt from 1099 rules, as have payments for the purchase of goods.

Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to ** even if it's a giant retailer like Staples or Best Buy ** at the time of the transaction, or else facing IRS penalties. In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction.

"Just with business travel it would include hotels, rental cars," Henschke says. "Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day."

How did this sweeping provision end up hidden in the health reform bill? No one is willing to take credit for introducing the new legislation, which appeared in the Senate Finance Committee's version of the health bill last fall. Committee chairs Don Baucus, D-Mont., and Chuck Grassley, R-Iowa, both referred calls to committee staffers, who wouldn't comment on the record.

Still, the form the new law took was surprising ** especially the requirement that businesses file 1099s when they purchase goods, which hardly anyone saw coming.

Henschke's group had previously surveyed its members and learned that they average 10 filings a year of 1099 forms, each of which takes about half an hour to prepare. That's in line with the GAO report, which found that a typical small business spent between three and five hours per year filing 1099s.

But SMC's survey found that extending 1099s just to services purchased from corporations would push that number to at least 200 filings per year for a typical small business ** adding an estimated $6,000 to the cost of preparing the average tax return. And that's without even accounting for the requirement that 1099s be filed for purchases of goods, a provision that Henschke's group didn't see coming when it conducted its survey last year.

Starting in 2012, you will have to get the filing information from every company you make purchases totaling over $600 a year and supply the same information to any business that pays you more than $600 a year. These 1099ís must be filed at the time the $600 is met and then for every transaction after that or face IRS penalties.

Arn't you really glad they crammed through the "Health Care Bill"?

Steve
__________________


Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 05-24-2010, 03:15 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,122
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
What a pain in the butt!

Quote:
The new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards. Starting in 2011, financial firms that process credit or debit card payments will be required to send their clients, and the IRS, an annual form documenting the year's transactions.
Next thing you know it, you will get a 1099-K for each check you deposit in the bank, from the bank.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 05-24-2010, 04:06 PM
swstout's Avatar
swstout swstout is offline
Steve
 
Join Date: Jan 2009
Location: Canastota, NY
Age: 66
Posts: 1,082
Rep Power: 8
swstout is on a distinguished road
Default You missed the bigger point

Steve, you missed the bigger point! You will have to file a 1099Misc When you pay one of your suppliers $600 in a year and then every time you make another purchase from that supplier. Any and all business expenses. Advertizing, supplies, travel, phone expenses, uniforms, etc.

What other business expenses do you have that total over $600 a year?

How many 1099misc form will you have to fill out and send in per week? At what cost? How about IRS fines for not submitting immediately? What other regulations and impositions are in store fr small businesses?

This s**t was secretly put into the 2000+ page health care bill and passed against the will of the American people. What othe "stealth" supprises are in store for free enterprise?

Steve
__________________


Reply With Quote
  #4  
Old 05-24-2010, 05:42 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 10
picframer will become famous soon enough
Default

This is nothing short of insane and talk about big brother watching every breath you take, I am sure there are other ways to increase revenue while cracking down, this to me is not a prudent way to go about it.
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #5  
Old 05-25-2010, 04:50 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,122
Rep Power: 10
Steve has disabled reputation
Default

What kind of fines can they hit you with if you don't file such a form? I could see how many business owners would miss that through out their year.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #6  
Old 05-25-2010, 05:03 PM
swstout's Avatar
swstout swstout is offline
Steve
 
Join Date: Jan 2009
Location: Canastota, NY
Age: 66
Posts: 1,082
Rep Power: 8
swstout is on a distinguished road
Default Fines

Either yet to be determined or a secret until after the elections!

Steve
__________________


Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

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 On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Maintenance Forms lnbn1975 Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 1 01-29-2011 03:14 AM
what do you think of these contract forms musician/lawnman General Business Discussions 11 02-20-2008 11:53 PM
website forms caseyshields Search Engine Optimization and Website Design Discussions. 29 12-17-2007 08:01 AM
Bid Forms FourSeasons Community Assistance 12 10-29-2007 08:47 AM
forms for irrigation General Business Discussions 3 02-11-2007 09:16 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
Today 06:59 PM
by avetslawncare
10 481
Employee job training...
brookline
12-15-2014 07:15 PM
Today 02:15 PM
by Steve
27 2,344
Billing methods
jcurr33
Yesterday 01:33 PM
Today 02:11 PM
by Steve
3 97
introducing myself
chris2500hd
03-24-2015 11:16 AM
Today 02:02 PM
by Steve
8 203
Mower vs lot size advice
jcurr33
03-25-2015 09:29 PM
Today 02:00 PM
by Steve
3 135
hoa bid need help
bigdaveha12
03-24-2015 08:29 PM
Today 12:43 PM
by biglee
5 193
Commercial Jobs
CurbAppeal1
03-25-2015 04:22 PM
Today 12:29 PM
by biglee
5 161
Flag or no flag
Matther777
03-24-2015 02:41 PM
Today 12:25 PM
by biglee
10 315
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
Yesterday 09:17 PM
by SGL1
14 3,386
Office Administration...
Girlfriend
Yesterday 05:40 PM
Yesterday 05:40 PM
by Girlfriend
0 58
Is this tree beyond help?
SGL1
03-22-2015 05:35 PM
03-25-2015 08:55 PM
by SGL1
14 470
Opinions on truck wrap
Trupro
02-28-2015 03:21 PM
03-25-2015 07:54 PM
by Trupro
33 1,523
How do you get...
ESREVER
03-25-2015 01:30 PM
03-25-2015 07:20 PM
by avetslawncare
6 156
Bid for large home...
lxarth
03-22-2015 11:06 AM
03-25-2015 03:44 PM
by jrs.landscaping
7 262
The New Wave!!!! Read...
Jamesw86
03-22-2015 08:33 PM
03-25-2015 02:50 PM
by Steve
10 288
grass in the gas tank
robkattankate
03-23-2015 04:37 PM
03-25-2015 02:36 PM
by Steve
5 171
Helping others
hansenslawncare
09-15-2011 08:50 PM
03-25-2015 02:33 PM
by Steve
11 2,646
DOT Number
acrajchel
03-20-2015 05:56 PM
03-25-2015 02:28 PM
by Steve
7 293
Michelin x tweel.
apmAkron
03-23-2015 04:22 PM
03-24-2015 12:40 PM
by Steve
3 125
Trepidation about...
michellemarvin
03-23-2015 07:46 PM
03-24-2015 11:47 AM
by Steve
1 120
spike aerator???
Bradcook21
03-21-2015 01:55 PM
03-24-2015 10:32 AM
by acrajchel
4 200
Hello from Maryland
michellemarvin
03-23-2015 12:44 PM
03-23-2015 07:33 PM
by michellemarvin
2 121
hello from south GA.
CCandALawnCare
03-23-2015 03:46 AM
03-23-2015 07:06 PM
by CCandALawnCare
2 111
Say Hello !!!
Steve
03-19-2007 11:18 AM
03-23-2015 06:14 PM
by jethro
1,218 379,962
Is anyone doing mosquito...
BWild
01-27-2015 11:30 AM
03-23-2015 12:28 PM
by Steve
9 825
35,000 Eddm
greenscaper123
03-18-2015 12:51 PM
03-23-2015 11:48 AM
by BLC7
18 459
Should i take on this...
christw
03-17-2013 01:23 PM
03-22-2015 09:02 PM
by ExtremeLawncareServices
36 7,552
mower stalls when...
boog
03-19-2015 08:20 AM
03-21-2015 08:13 PM
by Wolf4dk
7 254
Weed and Feed
robkattankate
03-19-2015 09:00 PM
03-21-2015 01:53 PM
by Bradcook21
4 294
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
03-20-2015 10:00 PM
by ExtremeLawncareServices
32 3,592
Hello Emily Reyes from...
Webster14829
03-20-2015 11:23 AM
03-20-2015 03:36 PM
by Steve
2 171
Finally going to give it...
jcurr33
03-12-2015 08:09 PM
03-20-2015 03:31 PM
by Steve
10 539
Weed id?
SGL1
03-17-2015 08:20 PM
03-20-2015 02:37 PM
by Steve
6 270
Mobile small engine...
luckylogger
03-15-2015 02:05 PM
03-20-2015 06:17 AM
by jrs.landscaping
15 465
Brad Cook 21
SC93
03-16-2015 10:40 PM
03-19-2015 09:04 PM
by Bradcook21
4 341
honest opinion please
uppercut
02-17-2015 01:30 AM
03-18-2015 02:55 PM
by Steve
15 1,298
Repair or replace the...
lxarth
12-17-2014 04:07 PM
03-18-2015 02:49 PM
by Just for Cuts
21 2,019
new to the site
bigdaveha12
03-17-2015 09:13 PM
03-18-2015 02:33 PM
by Steve
1 199
Small dovetail truck...
ExtremeLawncareServices
03-04-2015 06:47 PM
03-17-2015 10:14 PM
by ExtremeLawncareServices
17 852
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
03-17-2015 08:15 PM
by SGL1
3 274
mulch questions
Bradcook21
03-08-2015 08:37 AM
03-17-2015 07:00 PM
by Bradcook21
23 969
Scag hydro w/b frame...
Just for Cuts
03-11-2015 03:32 PM
03-17-2015 06:37 PM
by lxarth
11 490
Buy new or used?
lxarth
12-26-2014 09:50 PM
03-17-2015 06:11 PM
by lxarth
14 1,697
New to 2015
Infinitelawn
03-16-2015 08:29 AM
03-17-2015 11:47 AM
by Steve
4 282
Pulling trailer was...
SGL1
03-07-2015 07:14 PM
03-17-2015 08:11 AM
by SGL1
30 1,120
Diesel conversion?
Just for Cuts
03-02-2015 09:59 AM
03-16-2015 03:26 PM
by Just for Cuts
10 627
trimmer racks.
apmAkron
03-12-2015 09:07 AM
03-16-2015 03:17 PM
by Steve
4 347
Ferris FW35 questions
Chilehead
03-10-2015 08:31 PM
03-16-2015 03:11 PM
by Steve
4 348
new equipment
apmAkron
03-12-2015 09:12 AM
03-16-2015 03:07 PM
by Steve
7 360
When do you get the most...
CHEESE2009
09-14-2011 03:28 PM
03-16-2015 03:05 PM
by Steve
18 5,623
» Popular Tags
aerocore apartment complex auger bark billy goat brushcutter blades bush collections deliquentaccounts design edging employee problems equipment rental ferris flyers foreman free advertising grass growing a lawn care business hills hiring husqvarna introduction john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing marketing marketing secrets mr dave mulch new business past due per hour charge per hour service pricing profit on employee pto push versus ride running a business secrets to landscaping sell the vision seo shell small engine repair square foot steep lawns sulky theft toro grand stand trailer tree trimmer rack truck new used landscape up sell employee walk behind web design website website design winterization won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:28 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:28 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy