1099 will end the world in 2012 • Hacker News Board

Re: 1099 will end the world in 2012

#31

Post by cedsav » Fri, Jul 23, 2010, 3:23 PM UTC

ck2 wrote: post #15

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_ca... In any case, the final impact of the law won't be known until the IRS issues its regulations on the new law, which aren't expected to arrive until sometime next year. The IRS has not yet commented on when it will release regulations or schedule public hearings, and an agency spokesman was unsure when it will do so.

another quote: "Rep. Dan Lungren, R-Calif., introduced legislation last week that would repeal the new 1099 requirements."

Bottom line, a misguided attempt to improve income reporting and tax collection is going to be either watered down by the IRS or killed in congress. Maybe I'm a sad optimist, but to me it looks like democracy's still working well :-)

Re: 1099 will end the world in 2012

#32

Post by [deleted] » Fri, Jul 23, 2010, 3:24 PM UTC

DanielBMarkham wrote: post #21

[warning. rant head] This has to be the most mind-numbingly stupid thing I have seen the government do in the last couple of decades -- and that includes bad wars, if that's your thing. Why can it be so bad? Because it screws with every single economic entity in the nation, in a way that pervasive, subtle, and micro-managing. If you want to know where "1984" is, with Big Brother watching all of your moves, it's not b…

[deleted]

Re: 1099 will end the world in 2012

#33

Post by hugh3 » Fri, Jul 23, 2010, 3:25 PM UTC

whyenot wrote: post #27

Next time link to the original article, which is here: http://www.chcchoices.org/Article/28083/Consumer_Power_Repor... In this case the report was produced by the Hearland Institute which Wikipedia describes as "an American conservative public policy think tank based in Chicago, Illinois that advocates free market policies." Based on some of the bullshit they have published when it comes to global warming, they seem…

How is that relevant to anything?

Re: 1099 will end the world in 2012

#34

Post by kaens » Fri, Jul 23, 2010, 3:28 PM UTC

[deleted] wrote: post #20

jcnnghm wrote: post #12

Earlier quoted context omitted.

Cool so where do I send the 1099 for SAMs club, Office Depot, and the restaurant down the street to? Will you come deal with the reporting discrepancies for me. I'll be getting at least 1000 1099's a year, will you deal with those for me? This is needless bueracratic bullshit to the maximum.

[deleted]

I hate to break it to you, but a whole lot of people in the US don't have accountants and yet still spend more than $600 at various stores over the course of a year.

Re: 1099 will end the world in 2012

#35

Post by kaens » Fri, Jul 23, 2010, 3:29 PM UTC

It's almost like the government is trying to get its populace to silently replace it.

Re: 1099 will end the world in 2012

#36

Post by jcnnghm » Fri, Jul 23, 2010, 3:31 PM UTC

[deleted] wrote: post #20

jcnnghm wrote: post #12

Earlier quoted context omitted.

Cool so where do I send the 1099 for SAMs club, Office Depot, and the restaurant down the street to? Will you come deal with the reporting discrepancies for me. I'll be getting at least 1000 1099's a year, will you deal with those for me? This is needless bueracratic bullshit to the maximum.

[deleted]

This is at least a full time job, probably two, and maybe three depending on how many of our clients get the reporting wrong. That's a cost of $100k - $300k each year just for the accountants. Let's not forget that some clients will misreport, so we will need to chase them down and deal with their accountants and lawyers.

And remember, if the numbers don't match you'll also need a tax lawyer, because you'll be getting audited. Off by more than 25%, have fun in prison. This is a major, onerous reporting process. If you have a $50/month service with 1000 clients, you're doing $600k. This will eat at leSt half of your gross.

Re: 1099 will end the world in 2012

#37

Post by subwindow » Fri, Jul 23, 2010, 3:32 PM UTC

mark_l_watson wrote: post #28

I am a little concerned about this. While I do some consulting work for large companies and we do 1099s anyway, I also do a lot of very small projects (mostly helping other developers get started or get up to speed on something I know more about than they do). For these little jobs that are paid for via PayPal, now small customers need to do a 1099 with me - a hassle for them probably means not as many little 1 week…

As for getting paid for small jobs and paying people for small jobs, if you paid the person more than $600 in a tax year, you should have already been giving/receiving 1099s.

The only difference with the new rule is that you'd have to give 1099s to vendors.

Re: 1099 will end the world in 2012

#38

Post by ck2 » Fri, Jul 23, 2010, 3:32 PM UTC

ck2 wrote: post #15

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_ca... In any case, the final impact of the law won't be known until the IRS issues its regulations on the new law, which aren't expected to arrive until sometime next year. The IRS has not yet commented on when it will release regulations or schedule public hearings, and an agency spokesman was unsure when it will do so.

There are also lawyers from all sides of the political spectrum who say this won't survive a challenge in court because of the burden it creates and other reasons (can't find the original quotes right now sorry).

Re: 1099 will end the world in 2012

#39

Post by whyenot » Fri, Jul 23, 2010, 3:33 PM UTC

hugh3 wrote: post #33

whyenot wrote: post #27

Next time link to the original article, which is here: http://www.chcchoices.org/Article/28083/Consumer_Power_Repor... In this case the report was produced by the Hearland Institute which Wikipedia describes as "an American conservative public policy think tank based in Chicago, Illinois that advocates free market policies." Based on some of the bullshit they have published when it comes to global warming, they seem…

How is that relevant to anything?

How do you know they are telling the truth? Maybe this is just scaremongering from a group with a certain political agenda. Before getting excited it would be nice to see the same information from a less biased source. How is that not relevant?

Re: 1099 will end the world in 2012

#40

Post by btucker » Fri, Jul 23, 2010, 3:35 PM UTC

Anechoic wrote: post #18

The good news is that purchases made with a credit or debit card will be exempt from this requirement. However this requirement is still likely to be a huge pain for me at least because I use PayPal for a lot of vendors for totral purchases over $600 in a year. The IRS is accepting comments on this requirement at http://www.irs.gov/newsroom/article/0,,id=225029,00.html

Exactly. I'd assume most businesses do nearly all their purchasing through credit/debit card. I know we certainly do. So I don't see how this is such a big deal.