This is really bothering me. According to this NY Times post, we (in the U.S.) are going to have to submit a Form 1099 for every company we make a purchase from when we purchase $600 or more within a year.

"Under the new law, a company will have to file a Form 1099 with the I.R.S. for every vendor from whom it buys more than $600 in goods.

The section was intended to be a fund-raiser for the rest of the health care bill; it was projected to deliver $19 billion over the course of 10 years by making it more difficult for businesses to keep income unreported. But business groups assailed the new provisions. “This is absolutely unmanageable,” said Bill Rys, tax counsel for the National Federation of Independent Business, which is leading the effort to overturn the law. “It’s not just the amount of time and money businesses will have to spend, but all that goes with collecting this information. Who do you send it to? What do you do with employees who travel and are making purchases on the road?”

And why is it buried int he health care bill?

What do you think of this?

__________________
Robin A. Holstein
Robin's Desktop Virtual Administrative Services
My Blog

It sounds like they want to use small businesses as their 'watch dog' on other small businesses to make sure they are all paying taxes as they should... and there's the funding for socialized health care. Which I am FOR by the way... but yeah, the question always comes up about where the money will come from so there's my answer I suppose

I was under the impression that we had to file 1099s anyway for any independent contractors we paid more than $600, or at least that is what I've always done - so I'm assuming the change is that now we have to file them for ANY company we pay more than $600 to (if we are including it as a business expense). So, for instance I will have to file one for my ISP? My landlord, if I am claiming a home office writeoff, etc?

Am I understanding this correctly?

__________________

I don't think service is the same as goods. But - I don't have the answer.

You are correct about 1099 for contractors. And on that 1099 we have to provide a tax number, I believe. Does this mean we are required to get the tax number for Staples, Office Max, Sam's ... etc?

Is the local Staples where I stop in and have printing done under the same tax id as the online Staples I have paper shipped from?

Then there is 4-imprint, where I have items printed, this list could go on forever. My office furniture, copier company, books (Amazon/BAM) .... Just look around.

This is nuts. I have enough to do. I don't get paid for the time I spend doing my own books and taxes. Now I have to carve out even MORE time to comply with this?

Crazy.

__________________
Robin A. Holstein
Robin's Desktop Virtual Administrative Services
My Blog

This is correct and here is a great article that outlines the changes. And to take a look at the new draft 1099-K form, go here.

The good thing is that it does not start until next calendar year and by that time hopefully a repeal will be in place. Otherwise, many more companies will have to include their EIN number on receipts and such so that they are not inundated with requests come December 31st.

__________________
Lee Drozak
My Office Assistant

This is absolutely crazy. So basically, when I buy a new computer, add up all my office supplies, pay my internet, etc., I have to now get the tax ID for the vendor? That's gonna go over real well...

My question is this:

Do I need to send 1099s at the end of this year (2010) to my clients or does this start next year for tax year 2011?

In the past, I asked my clients to send me the 1099s.

Thanks,
Janine

__________________
WRITE FAB RFP PROPOSALS & land THE VA job. WinningRFP unveils soon! SignUp www.WinningRFP.com

You shouldn't have to send a 1099 to your clients since they are the ones paying you; it sounds like that would only be for you to send it to other vendors if YOUR company purchased something from another company at a cost of over $600...please correct me if I am wrong.

__________________
Kimberly

Begins in 2011 Janine. Wonder if the big boxes like Staples, etc. will list their EIN on their site to make it easier for us little guys and gals?

__________________
Lee Drozak
My Office Assistant

Lee,

Forgive me for asking for futher clarification.

Since we always file in the following year for the previous year does this mean that I am sending out 1099s this year (12/2010) to my clients for them to file their taxes in 2011 for 2010 returns?

I just had a client ask me for a 1099 to be submitted by the end of this year but I read the article (referenced in a prior post) that the program won't start until 2011 for 2011 returns.

So I am super-confused.

Janine

__________________
WRITE FAB RFP PROPOSALS & land THE VA job. WinningRFP unveils soon! SignUp www.WinningRFP.com

Originally Posted by Your Virtual Wizard

Lee, Since we always file in the following year for the previous year does this mean that I am sending out 1099s this year (12/2010) to my clients for them to file their taxes in 2011 for 2010 returns? Janine

For work done in 2010, filed in 2011 it will be the old way (i.e. services only, not goods).

For work done in 2011, filed in 2012 it will still be the old way.

For work done and purchases made in 2012 the new law will apply and you need to send 1099s to all your suppliers with whom you have spent $600 or more.

I have 3 out of my 4 blog articles published on the subject which may be of help...

http://bizcornerstone.wordpress.com/...%80%a6-part-1/