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1099 will end the world in 2012

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Re: 1099 will end the world in 2012

#151

Post by megablast »

alnayyir wrote: post #149
jimbokun wrote: post #112

Earlier quoted context omitted.

"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.

I am not so sure that is true. It is like saying, be polite to people in stores and restaurants and you are more likely to get what you want, but the fact is that you see pissed of people making a stink, and getting treated better for fear of pissing them off.

We wish it was true, but it ain't.

Re: 1099 will end the world in 2012

#152

Post by drawkbox »

I see this as an immense opportunity to automate this via an software by your identity at purchase. Why can't this be part of the software transaction and automatically reported and available at the IRS real-time.

Our tax system is way too form and administrative based still. It is always delayed and never real-time. Get this stuff out of the way and automate it throughout the year. Hide income taxes and 1099s for contractors just like they hide sales tax in transactions, or just rid of the income tax altogether and go another direction.

Re: 1099 will end the world in 2012

#153

Post by Kadin »

sp332 wrote: post #143
yummyfajitas wrote: post #130

Earlier quoted context omitted.

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.

That's not a very good example. The Cabinet consists of the heads of various Departments, whichever ones the President wants to hear from at any given moment. The Departments are created by Congress.

An Amendment wasn't required to create the Air Force any more than it was required to create the DHS, or is required to create any other Federal agency. Congress has the power to create, destroy, and reorganize Federal agencies as it wants to. So in 1947, Congress created the Department of Defense as a Federal Department, which the Constitution allows them to do, and put the Army, Navy, and Air Force (new) under it. There wasn't anything even vaguely unconstitutional about it, even taking a really uncharitable reading.

Congress creates new Departments fairly regularly; there wasn't a need to go through the amendment process for the DoD any more than there was to create the Departments of State, Transportation, Energy, Labor, Education... etc. All it takes to create one is the same process to pass any other piece of legislation.

I would personally not be against requiring an amendment to create new agencies, just on the grounds of controlling governmental scope creep, but that's not the way things are set up. Congress has been creating Departments since the ink was barely dry on the Constitution itself.

Re: 1099 will end the world in 2012

#154

Post by RancheroTaco »

While I disagree with the manner in which many of the "calm down, folks"-esque comments take for granted that this issue will automagically sort itself out, I do agree with them that there are more constructive ways to deal with it than writing rants on HN.

Please, if you are, as I am, concerned about the potential consequences of this provision, please calmly inform your representatives (especially ones on the [very powerful] House Ways & Means Committee) that you would like them to support HR 5141 ( http://www.opencongress.org/bill/111-h5141/show ), which selectively voids this provision.

Concisely and realistically emphasize the impact you believe this provision will have on your present or future business(es). Also, IMHO, it would be constructive to mention that (regardless of your stance of the ACA) you are not expressing concern about the ACA as a whole, but rather about this specific provision; Democrats may otherwise interpret your message as a general attack on their hard-fought (perhaps Pyrrhic?) victory and Republicans may take it as encouragement to frame the debate over HR 5141 as part of an overall attack on the ACA, which would likely cause the the bill to fail. IOW, know your audience.

Re: 1099 will end the world in 2012

#155

Post by ericd »

RyanMcGreal wrote: post #88
Sirocco wrote: post #83

Earlier quoted context omitted.

In all seriousness, the Reddit influx is upon us, full tilt.

From the Hacker News Guidelines: [1] "If your account is less than a year old, please don't submit comments saying that HN is turning into Reddit. (It's a common semi-noob illusion.)" [1] http://ycombinator.com/newsguidelines.html

There was a discussion recently by a number of long-time accounts on how this seems to actually be coming to pass, and that the quality of submissions hitting the front page has clearly decreased. I can't say I disagree.

That said, I'm just as annoyed as the next guy at the inefficiency that the IRS seems to be trying to foist into the economy to help them raise revenues.

Re: 1099 will end the world in 2012

#156

Post by danbmil99 »

what this means in practice I suspect is that audits will result in more findings of non-compliance, therefore more penalty revenue for the IRS. While I agree it's stupid paperwork, if your vendors pay their taxes, and you are keeping your accounts correctly, it probably won't be the biggest deal on the planet to generate a bunch of 1099's for your expenses.

Re: 1099 will end the world in 2012

#157

Post by chronomex »

megablast wrote: post #151
alnayyir wrote: post #149

Earlier quoted context omitted.

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.

I am not so sure that is true. It is like saying, be polite to people in stores and restaurants and you are more likely to get what you want, but the fact is that you see pissed of people making a stink, and getting treated better for fear of pissing them off. We wish it was true, but it ain't.

I work in a small store, where I'm the only person running the place. I eject people who cause trouble.

Re: 1099 will end the world in 2012

#158

Post by chronomex »

koenigdavidmj wrote: post #150
sprout wrote: post #65

Earlier quoted context omitted.

>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.

I'd rather pay the 9% to support local services and get my packages a bit earlier.

Re: 1099 will end the world in 2012

#159

Post by chronomex »

mark_l_watson wrote: post #54
subwindow wrote: post #37

Earlier quoted context omitted.

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.

We are OK on paying vendors: for hiring a handyman one or twice a year, a plumber about once a year, and a brush removal service we are under the $600 limit - we mostly do things ourselves. I am more concerned with small customers who pay me a thousand or two a year via PayPal - now they have hassles. It would be really good if PayPal had some service that automated this!

They very well may, by the time this rolls around.
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