131–140 of 172 posts
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 $600, they still only have to submit one 1099.
Earlier quoted context omitted.
[warning: common sense ahead] Seriously. Chill out. The thing hasn't even been finalized yet, and there'll be public comment periods and reviews and all sorts of other stuff providing people an opportunity to go froth at the mouth about how this will be the end of the world or whatever. In the meantime: take a deep breath. Relax. Read and learn. Get as much information as you can instead of going off half-cocked. And…
It's my understanding there is a specific exemption to any purchases made with a Credit Card. So now it's non CC company to company transactions > 600$/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.
Last year a customer accidentally double entered my invoice in their system, and paid me two checks instead of one. I contacted them to let them know of the discrepancy, and never cashed the second check. Their system was never corrected, and I got a 1099 showing I earned double the actual amount. I'm still trying to iron this mess out, and it's just one 1099.
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.
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
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…
When everyone is a lawbreaker enforcement becomes selective, you could say arbitrary.
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
Sounds like quite a handout to credit card companies.
[0] http://www.washingtonpost.com/wp-dyn/content/article/2010/07... (near the end)
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…
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)
Even if that were not the case, it would hardly be a 1984 scenario, especially given that there are no criminal penalties for failing to file the 1099s. That's pretty absurdly embarrassing hyperbole that makes you sound like you came from DailyKos or something. The war on drugs is more of a 1984 scenario than requiring 1099s is, especially since it comes with widespread criminal penalties.
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.
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…
I think that's the key of it right there. The worst the IRS could do if you failed to file the 1099s is... force you to file the 1099s. The horror.
[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…