Decent News for US Photographers

The 1099 repeal passed the House of Representatives by a vote of 314-112. It's been placed on the calandar for a vote in the Senate. PPA has been lobbying hard for this repeal.

A niggling problem, though: This item is part of the health reform act, and one federal district court has already ruled that the act has to be upheld or repealed on an all-or-nothing basis. Right now, there is a lot of activity going on in Congress as though that court ruling has never happened...I suspect that issue is going to have to be decided by the Supreme Court before any changes to the law are possible.

OTOH, while that wheel slowly turns, Congress can always direct the IRS to look the other way.

What does this mean, practically speaking, for photographers? I am not a consultant/free lancer/photographer, etc. I know what a 1099 is but what does this mean for photographers?

http://boss.blogs.nyti​mes.com …ate-heads-to-white-house/

(i had to google it too)

from a related article:
Section 9006 of the new health care law adds purchases of goods to the types of payments that companies must report to the Internal Revenue Service, ending a loophole that excluded payments to corporations from the reporting requirements. In effect, a company would have to complete I.R.S. Form 1099 for any vendor from which it purchased more than $600 of goods or services in a year — and then send the form to both the I.R.S. and the vendor. Many small-business owners — and their advocates in Washington — complain that the new rules are an intolerable burden. But Congressional tax analysts forecast that the additional reporting would increase tax compliance to the tune of $19 billion over 10 years.

This only sounds like a problem for those who don't already properly report their earnings.

Think how many places you probably spent $600 or more (per purchase) this year...

Each would have to receive a 1099 from you.

FlyingPhotog wrote in post #13512150
Think how many places you probably spent $600 or more (per purchase) this year...

Each would have to receive a 1099 from you.

As well for suppliers: Look at how many 1099s B&H would get receive and then report.

Wait. Maybe it was a ploy to get more business for the Post Office.

kenclunk wrote in post #13512147
This only sounds like a problem for those who don't already properly report their earnings.

It has nothing to do with reporting earnings. Imagine the pain in the arse it would be for every small business to send a 1099 to every supplier they spent over $600 with for the year. It would be a nightmare.