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1099 will end the world in 2012

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Re: 1099 will end the world in 2012

#141

Post by rada »

_delirium wrote: post #137
Confusion wrote: post #113

Earlier quoted context omitted.

This is a 1984 scenario, because virtually everyone becomes a criminal, as everyone will fail to fill out all the proper 1099's. Consequently, at any time you do something the government doesn't like, they can come and get you for those incorrectly or unfiled 1099's. (Reiterating what madair already replied to sprout, but I felt his point was not as clear as it could be)

That would require that "virtually everyone" is a business, which is not the case. Somewhere less than 5% of the U.S. population run businesses. Again, contrary to the misinformation rampant in this discussion, individual expenditures that are not business expenses won't require 1099s. (Did anyone even read the linked article?) Even if that were not the case, it would hardly be a 1984 scenario, especially given that…

To add to your point, a couple weeks ago I saw a dozen hysterical media reports concerning another provision slipped into the bill, this time regarding the sale of gold. Supposedly, the government wants all gold sellers to report any transactions exceeding $600. I've researched a bit and it turned out to be the same legislation - only sales between businesses are required to be reported, and there is nothing specific about gold, it's just part of the same 1099 provision.

Don't get me wrong, I've been outraged by the practice of concealing unrelated bits of legislation inside various bills for years, but to say that this is worse than war is truly an exaggeration. Major annoyance, yes, but still quite a bit better than being shot.

Re: 1099 will end the world in 2012

#142

Post by anigbrowl »

jcnnghm wrote: post #133
Anechoic wrote: post #85

Earlier quoted context omitted.

The good news for you is that the uncashed second check will eventually show up as a discrepancy on their books and they will have to deal with it. It make take some time but it will happen.

And if he gets audited before then for under-reporting his income?

The original invoice and uncashed check would substantiate his explanation of the error. I don't enjoy filling out forms etc., but somehow I manage to keep my tax paperwork and business receipts chronically organized in case I ever need to verify something.

Re: 1099 will end the world in 2012

#143

Post by sp332 »

yummyfajitas wrote: post #130
sp332 wrote: post #110

Earlier quoted context omitted.

If the Air Force wasn't a big enough deal to require an amendment, neither is health care.

Article 1, Section 8: The Congress shall have Power To [...] raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years; Are you seriously going to argue that "Armies" doesn't include the Air Force?

Specifically, I meant that the constitution explicitly gives each of the Army and the Navy cabinet-level power and responsibility. The Air Force was given the same power and responsibility, without amending the constitution.

Re: 1099 will end the world in 2012

#145

Post by oconnore »

_delirium wrote: post #137
Confusion wrote: post #113

Earlier quoted context omitted.

This is a 1984 scenario, because virtually everyone becomes a criminal, as everyone will fail to fill out all the proper 1099's. Consequently, at any time you do something the government doesn't like, they can come and get you for those incorrectly or unfiled 1099's. (Reiterating what madair already replied to sprout, but I felt his point was not as clear as it could be)

That would require that "virtually everyone" is a business, which is not the case. Somewhere less than 5% of the U.S. population run businesses. Again, contrary to the misinformation rampant in this discussion, individual expenditures that are not business expenses won't require 1099s. (Did anyone even read the linked article?) Even if that were not the case, it would hardly be a 1984 scenario, especially given that…

It's not a 1984 scenario, no one has video surveillance in their house, and you can have sex without being executed. You win.

On the other hand, this is a pretty big deal, and your reply doesn't justify it. Yes, not everyone "is" a business, but everyone relies on the economy every day. Adding a not insignificant overhead to the companies that bring you food, water, electricity, etc. makes those items more expensive. Also, increasing overhead in businesses makes it harder to start businesses, which is sort of relevant given that we're on YC news.

Re: 1099 will end the world in 2012

#146

Post by fexl »

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…

Even if it does go through exactly this way, very few people will comply with it, so the probability of getting singled out for serious retribution should be fairly low. So there's yet another reason to chill out.

Re: 1099 will end the world in 2012

#147

Post by DLWormwood »

mcantelon wrote: post #132
Retric wrote: post #90

Earlier quoted context omitted.

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.

This will likely boost the prepaid anonymous credit card business (for those who don't like the government being able to track how they spend their own money).

> prepaid anonymous credit card business

Haven’t these been targeted by government regulation in the last couple years? I remember reading about police agencies wanting these banned (along with pre-paid cellphones) for enabling the drug trade.

Re: 1099 will end the world in 2012

#148

Post by makmanalp »

Confusion wrote: post #115
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…

The IRS is accepting comments on the issue. [..] It was a short-sighted clause put in by a politician trying to close a loophole. It's not just one politician: a great many people have been over these documents. It seems none of them realized how insane this is. Or perhaps none of them could be bothered to do anything about it? Either way: means there's something seriously wrong right there. If enough sillyness makes…

I just really want to know the reasoning behind this. What would make a person propose such a thing? What loophole were they thinking of closing? How could they not see what is so blatantly wrong with what they are proposing? I wonder, who is this person?

Re: 1099 will end the world in 2012

#149

Post by alnayyir »

jimbokun wrote: post #112
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…

"By then, it is almost guaranteed that the rule will be significantly weakened to the point where it is not much different than what we have in place now." This is probably only true if people flip out over it now.

Intelligent and measured comment is more likely to be listened to, especially if it comes from people educated in tax law and accounting.

I don't think the IRS is reading angry internet forums.

This law is just noodling. They're just fishing around for new income ideas, throwing spaghetti at the wall, and seeing what sticks.

Don't freak out.

Re: 1099 will end the world in 2012

#150

Post by koenigdavidmj »

sprout wrote: post #65
_delirium wrote: post #60

Earlier quoted context omitted.

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.

>if I'm in the same state. And that happens what, 8% of the time? Most online services are evading sales tax.

Hell, if you're in Washington, Amazon will ship from an out-of-state warehouse so that you still don't have to pay.
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