Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

1099 will end the world in 2012

academicvc.com

Post reply on HN
Print view View original

91–100 of 172 posts

Re: 1099 will end the world in 2012

#91

Post by anamax »

ubernostrum wrote: post #81
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…

[warning: common sense ahead] Seriously. Chill out. The thing hasn't even been finalized yet, and there'll be public comment periods and reviews and all sorts of other stuff providing people an opportunity to go froth at the mouth about how this will be the end of the world or whatever. In the meantime: take a deep breath. Relax. Read and learn. Get as much information as you can instead of going off half-cocked. And…

> The thing hasn't even been finalized yet, and there'll be public comment periods and reviews and all sorts of other stuff providing people like an opportunity to go froth at the mouth about how this will be the end of the world or whatever.

The legislation has been "finalized". The regs aren't written, but the mandate is pretty clear, so they can't have much effect.

If you're a biz and you pay in certain ways, you will have to issue a lot more 1099s than you do now. Regs may change the number by 1-2%, but they won't affect the order of magnitude.

Re: 1099 will end the world in 2012

#92

Post by brianpan »

subwindow wrote: post #41

What the hell is up with this thread? This has to be the worst thread I've ever seen at HN. You'd think this were a comment thread on Fox News or something. People: Chill the fuck out. The IRS is accepting comments on the issue. The rule doesn't go into effect until, realistically, April of 2013. By then, it is almost guaranteed that the rule will be significantly weakened to the point where it is not much different…

What is up is the inflammatory submission title and linked page got people all riled up. There is not really a good reason to be linking tax codes with the end of the world. I'd downvote the submission if I could.

Re: 1099 will end the world in 2012

#93

Post by mmaunder »

There is an incredible amount of rhetoric from both sides of the isle on supporting small businesses, supporting the entrepreneur, that entrepreneurs are the job creators, that innovation will lead us out of this recession. But it's all just politically correct talk.

This forum is filled with entrepreneurs and innovators. It has one of the highest density of job creators of any forum on the web. Has anyone here seen any help from the government in creating jobs? Either on the supply side (grants) or on the demand side (tax breaks)? Or by reducing our administrative workload? From either side of the isle, conservative or liberal?

Instead we have bureaucratic nightmares like this 1099 legislation that create work that has a not insignificant opportunity cost for innovation and job creation in this country. You could be coding, but instead you're issuing 1099's to walmart.

The reality is that even if this passes, we'll all do just fine and keep innovating. But the next time some politician tells you he supports job creation in this country be sure to call bullshit on him. They only say it because it sounds good and they have done nothing to help us create jobs.

Re: 1099 will end the world in 2012

#94

Post by mattmcknight »

_delirium wrote: post #60
mattmcknight wrote: post #24

Earlier quoted context omitted.

Part of what they are doing is getting the system ready to put a sales tax on services. That will generate some serious revenue (or provide another effective mechanism to steal money from some people to give to other people, depending on your perspective.)

Aren't services already covered by most states' sales taxes? I paid sales tax when I got my oil changed recently, and my VPS provider charges sales tax if I'm in the same state.

No. There are exceptions, usually made to extract revenue from particular services, sometimes targeting people that don't live in that locality, like hotel taxes, but very seldom do they tax things like attorney services (wonder why...) or software development.

NYC has a weird list of services. http://www.nyc.gov/html/dof/html/business/business_tax_nys_s... The Texas list is more comprehensive, and includes web site creation http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html

This is also an option that would be useful in creating a VAT, if the government has access to all of these transactions. Sadly, the states already tax most of this money and it would look bad to have Feds move in there. However, the gap in service taxes would appear to be an opportunity, especially in B2B taxes which would be invisible to most people.

Re: 1099 will end the world in 2012

#95

Post by walkon »

Retric wrote: post #89
jcnnghm wrote: post #14

This will be an unmitigated disaster. Office Depot will get 50 million or so 1099's. How do you deal with that many accounting discrepancies? How do you match that many transactions to all those forms. What about under and over-reporting? This is a Democrat clusterfuck if there ever was one.

This does not apply to transaction made with a credit card so I don't think Office Depot is going to notice.

You're saying there are no customers of Office Depot that make a total of $600 in purchases in a given year with means of payment other than a credit card (e.g. cash, purchase order, or check)? Seems quite unlikely.

Re: 1099 will end the world in 2012

#96

Post by terrellm »

In addition to the 1099 nightmare, there's also the S-corp self employment tax nightmare where all s-corp income has the 15.3% self-employment tax imposed, not just the earned income. I predict a mass switch to C-corps.

From http://www.businessbrief.com/feds-take-aim-at-small-biz-loop...

Both House and Senate bills address what some lawmakers see as evasion of employment tax by certain individuals. The Internal Revenue Service has stated that many taxpayers receive nominal salaries and take their earnings through distributions by S corps., limited partnerships, or other entities. The House and Senate bills would change that situation by imposing self-employment payroll taxes on 100% of S-corp. pass-through income when:

- The S corp. is engaged in a professional service business, with the key assets being the reputation and skill of no more than three employees, or

- The S corp. is a partner in a professional service business.

Re: 1099 will end the world in 2012

#97

Post by _cbsz »

sprout wrote: post #64
_delirium wrote: post #47

Earlier quoted context omitted.

Man, talk about hyperbole. This is probably a terrible idea economically, but it's hardly a Nineteen Eighty-Four scenario. It's not becoming illegal to say "the IRS sucks", the IRS will not have cameras in your house looking for the slightest sign of dissent, and it'll actually be nearly impossible to get imprisoned for anything at all (tax penalties are generally merely more taxes, unless you deliberately lie). Also…

It kind of reminds me of Schneier's explanation of cyberwarfare as if an enemy army invaded and all got in line at the BMV. Except in this case it's a horrible tyrranical oligarchy that instead of making your life hell gives you a few extra forms to fill out every week.

If you're trying to Google the referenced explanation, he said "DMV", and it's here: http://www.schneier.com/blog/archives/2010/07/the_threat_of_...

Re: 1099 will end the world in 2012

#98

Post by dsmithn »

jcnnghm wrote: post #14

This will be an unmitigated disaster. Office Depot will get 50 million or so 1099's. How do you deal with that many accounting discrepancies? How do you match that many transactions to all those forms. What about under and over-reporting? This is a Democrat clusterfuck if there ever was one.

If a company purchases anything over $600, they still only have to submit one 1099.

Re: 1099 will end the world in 2012

#99

Post by terrellm »

Retric wrote: post #90
ubernostrum wrote: post #81

Earlier quoted context omitted.

[warning: common sense ahead] Seriously. Chill out. The thing hasn't even been finalized yet, and there'll be public comment periods and reviews and all sorts of other stuff providing people an opportunity to go froth at the mouth about how this will be the end of the world or whatever. In the meantime: take a deep breath. Relax. Read and learn. Get as much information as you can instead of going off half-cocked. And…

It's my understanding there is a specific exemption to any purchases made with a Credit Card. So now it's non CC company to company transactions > 600$/year which is a far smaller pool. The absolute worst possible case is total revenue / 600$ but the reality is most companies have a fairly small number of suppliers. So something like Ln (revenue / 1000) for the average small business.

That's my understanding as explained by my CPA a few minutes ago.

Re: 1099 will end the world in 2012

#100

Post by oconnore »

Retric wrote: post #90
ubernostrum wrote: post #81

Earlier quoted context omitted.

[warning: common sense ahead] Seriously. Chill out. The thing hasn't even been finalized yet, and there'll be public comment periods and reviews and all sorts of other stuff providing people an opportunity to go froth at the mouth about how this will be the end of the world or whatever. In the meantime: take a deep breath. Relax. Read and learn. Get as much information as you can instead of going off half-cocked. And…

It's my understanding there is a specific exemption to any purchases made with a Credit Card. So now it's non CC company to company transactions > 600$/year which is a far smaller pool. The absolute worst possible case is total revenue / 600$ but the reality is most companies have a fairly small number of suppliers. So something like Ln (revenue / 1000) for the average small business.

Effectively banning cash/check/MO/wire transactions doesn't make this any better. This needs to go away.
Post reply on HN