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: 65
Posts: 1,082
Rep Power: 7
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: 36,307
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: 65
Posts: 1,082
Rep Power: 7
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: 9
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: 36,307
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: 65
Posts: 1,082
Rep Power: 7
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 Outdoor Power Equipment Discussion, Repairs, Buy or Sell 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
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
Yesterday 11:36 PM
by SGL1
7 242
snowplowing
jshak40
Yesterday 07:20 AM
Yesterday 07:55 PM
by jrs.landscaping
5 109
Brake job!
kslawn
08-30-2014 07:49 AM
Yesterday 05:57 PM
by 04bluesilverado
5 154
Trailer tires
J.A.S.LawnService
Yesterday 10:17 AM
Yesterday 11:39 AM
by stevef1201
1 60
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
08-31-2014 05:55 PM
by stevef1201
3 110
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
08-31-2014 04:48 PM
by avetslawncare
6 233
New to the industry-...
Lsmain
08-31-2014 10:53 AM
08-31-2014 10:53 AM
by Lsmain
0 86
Sod
RosalesLawnCare
08-27-2014 03:47 PM
08-30-2014 07:00 PM
by RosalesLawnCare
2 176
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
08-30-2014 05:04 PM
by stevef1201
1 110
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
08-30-2014 09:49 AM
by BLC7
10 412
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
08-29-2014 05:39 PM
by jrs.landscaping
1 132
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 549
Hello
jawnebgoode
08-28-2014 08:37 PM
08-28-2014 08:37 PM
by jawnebgoode
0 72
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
08-28-2014 05:06 PM
by kurtwin
0 97
Softball field
kslawn
08-15-2014 09:28 AM
08-28-2014 12:01 PM
by Steve
16 633
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
08-28-2014 11:58 AM
by Steve
5 233
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 331,284
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
08-26-2014 04:21 PM
by ExtremeLawncareServices
110 6,679
How do I approach...
Bradcook21
08-21-2014 01:48 AM
08-26-2014 05:08 AM
by Billy Goat
12 537
Tender Process
M2Dave
08-24-2014 12:31 PM
08-25-2014 04:14 PM
by Steve
2 216
Grass hopper mower
ExtremeLawncareServices
12-05-2013 08:51 AM
08-25-2014 04:02 PM
by Steve
26 3,874
Need help pricing basic...
Bradcook21
08-22-2014 01:21 AM
08-22-2014 01:05 PM
by Steve
2 307
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
08-22-2014 01:01 PM
by Steve
6 381
yearly contract help...
jrob0691
08-21-2014 04:09 PM
08-22-2014 12:48 PM
by Steve
1 254
Pampas bushes
Bradcook21
08-22-2014 01:30 AM
08-22-2014 07:17 AM
by grassdoctore
1 225
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
08-21-2014 08:50 PM
by phlawncare
2 263
Fuel Can Spouts
Shark1611
08-16-2014 09:09 AM
08-21-2014 08:23 PM
by SGL1
11 509
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
08-21-2014 05:03 PM
by stevef1201
6 765
Hello
M2Dave
08-21-2014 12:32 AM
08-21-2014 01:38 PM
by Steve
1 234
New Landscaping Business
rekon32
08-16-2014 02:26 PM
08-21-2014 12:33 PM
by SouthallMowing
8 568
Downed Tree Chop Bid
WesleySnips
08-16-2014 03:47 PM
08-20-2014 01:44 PM
by SGL1
10 531
60 inch honda/bunton...
pblawncare
08-17-2014 11:30 AM
08-18-2014 03:19 PM
by Steve
2 277
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
08-18-2014 03:16 PM
by Steve
4 387
Preparing the soil
Billy Goat
08-16-2014 06:18 PM
08-18-2014 03:01 PM
by Steve
1 302
What to pay help
phlawncare
08-04-2014 08:33 PM
08-18-2014 10:33 AM
by jrs.landscaping
29 1,134
Hello
Jeff1
08-07-2014 11:18 PM
08-15-2014 11:53 PM
by Jeff1
11 590
Lie #2 RESIDENTIAL...
ExtremeLawncareServices
01-06-2014 05:02 AM
08-15-2014 01:46 PM
by mattthelawnguy
54 6,706
Need help 30 HP koler...
Shady Grady
08-01-2014 03:31 PM
08-15-2014 08:46 AM
by kslawn
18 769
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
08-14-2014 02:37 AM
by BlackRain75
12 1,966
first year update
cmdlawncare
08-12-2014 05:41 PM
08-13-2014 03:29 PM
by Steve
1 393
Hello from Jacksonville,...
JM Lawn Care
08-10-2014 07:15 AM
08-13-2014 07:04 AM
by Sprinkler Buddy
9 514
Hello everyone new to...
maddyandrays
08-11-2014 04:51 PM
08-12-2014 08:58 PM
by Shark1611
2 348
Walk behinds
hpruitcei
08-07-2014 06:28 PM
08-12-2014 02:35 PM
by mattthelawnguy
7 622
New name help
stevef1201
08-10-2014 04:27 PM
08-12-2014 12:03 PM
by Steve
6 502
my little green dilemmas
Lawn Techie
08-03-2014 11:47 AM
08-11-2014 01:20 PM
by Steve
7 597
what the best...
CleanCutsLLC
08-02-2014 01:02 AM
08-11-2014 01:16 PM
by Steve
6 650
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
08-11-2014 01:19 AM
by ExtremeLawncareServices
13 902
Covering all the bases
janslawncare
08-08-2014 10:11 AM
08-08-2014 01:41 PM
by Steve
1 440
New from Florida
ADE
08-06-2014 08:40 PM
08-08-2014 01:32 PM
by Steve
4 504
JOB - Landscape Install...
janslawncare
08-08-2014 10:06 AM
08-08-2014 10:06 AM
by janslawncare
0 394
» Popular Tags
2wd advertisement apartment complex article marketing bid blades charge christmas lighting courtesy call credit card processing customers decorating ditches employee problems escrow exmark ferris foreman fundraiser georgia gopherhaul grass gravely gravely 34" zero turn growing a lawn care business holiday lighting how much to charge installation landscape services lawn lawn care lawn care business book lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo leaf leaf removal lighting brass outdoor lights marketing native plants new buisness online classifieds outdoor environments payment podcast property management company redmax running a business savannah scag seo snow snow plowing sprayer starting a business steep lawns stihl sulky toro trimmer rack truck new used landscape turfgrass consulting walk behind walker zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:07 AM.


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

All times are GMT -5. The time now is 04:07 AM.

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