New 1099 reporting rules for SB

Has anyone looked into the new reporting rules for filing 1099's?
If it passes small business' will need to file a 1099 for any payments totaling $600 per year made to any vendor for goods or services.
Thats a ton of paperwork.
As I understand it, it applies to purchasing used equipment here on POTN.
Thoughts?

the ASMP has a form letter to protest the changes:
http://www.asmp.org …c/industry-announcements/

zagiace wrote in post #10995337
Has anyone looked into the new reporting rules for filing 1099's?
If it passes small business' will need to file a 1099 for any payments totaling $600 per year made to any vendor for goods or services.
Thats a ton of paperwork.
As I understand it, it applies to purchasing used equipment here on POTN.
Thoughts?

I've written my congresscritters about it. This is a lot of extra paperwork for us photographers at the end of the retail chain, but it's really aimed at extracting more money from middle-agents like WHCC and B&H--treating them as if they were subcontractors rather than suppliers. It appears to me to be sneaky VAT.

Yes, I've read it and it stinks. While I see much like RDKirk does, a tax collection mechanism, I don't see it has much more paperwork though. I have to issue 1099's anyway, so it's just a matter of loading more 1099 forms in the printer, and using more stamps to get them mailed. If one does their accounting on paper, and hand writes the 1099's, yea, I could see that as a lot more work.

I've sent my displeasure to the higher ups as well. We all need to voice our opinions if we are to be heard.

The change would affect any payments to any individual or corporation. Gathering the information itself like tax id and such seems to me a pain in the butt.
Only credit card purchases are exempt.
Currently I don't file 1099's for BH, album companies, lab work and used equipment purchases.
I guess i am going on a shopping spree this year.

Retailers and vendors will end up having something on line to handle all the requests. Ie, page on their website with their information for the 1099's. Shouldn't be a problem. Exchanging EIN's between business won't be all that hard.

But you're right about private sales, and I hadn't thought of that specifically. I will be asking private parties for their social security number for the 1099's anytime I make a purchase from them over the limit. I can always give out the EIN rather than my SSN, but if they don't have a business, what option do they have? Would we be able to file without a SSN and just their name/address/etc if they refuse, of would we have to do it under the table because we can't get their SSN? I can see issues here that would need to be addressed in the law.

My confidence in them getting it right, based on past experience, is pretty low

Good point zagiace

zagiace wrote in post #10995337
Has anyone looked into the new reporting rules for filing 1099's?
If it passes small business' will need to file a 1099 for any payments totaling $600 per year made to any vendor for goods or services.
Thats a ton of paperwork.
As I understand it, it applies to purchasing used equipment here on POTN.
Thoughts?

How did you come to that conclusion? I thought it only applied to retail suppliers (i.e. If I bought $600+ from B&H).

Either way it's a pile of steaming poop.

alabama1980 wrote in post #10996529
How did you come to that conclusion? I thought it only applied to retail suppliers (i.e. If I bought $600+ from B&H).

Either way it's a pile of steaming poop.

I was told it applies to any purchase over $600...I haven't taken the time to look into it yet though...

I very well could be wrong.
As i read it, it is not easily understood. It seems as though any purchase made by a business from any individual, business or corporation that is over $600 requires a 1099.
Previously, they were only required for rent, services and financial transactions. The sale/purchases of tangible goods will now also require a 1099.
Basically heard about it today from a friend and decided to google. There are several articles about it.
It is not in effect until January, 2012.

zagiace wrote in post #10996640
I very well could be wrong.
As i read it, it is not easily understood. It seems as though any purchase made by a business from any individual, business or corporation that is over $600 requires a 1099.
Previously, they were only required for rent, services and financial transactions. The sale/purchases of tangible goods will now also require a 1099.

I did some Googling a few weeks ago, and your understanding is how it was explained by a couple of different well-known financial websites--who should know what they're talking about. However, it's not just a single purchase, but in any case that the sum of payments over the year total $600 or more.

We have always had to produce a 1099 for individuals, so this new requirement certainly would not exclude them, but be in addition to them. I'm not sure that bona fide retailers and wholesalers will have to pay anything--it may just be a dragnet method of forcing us to do a 1099 on small expenses that we might have omitted before, but if so, it's a Draconian dragnet method. They could have just said, "everyone as before, including small amounts down to $600."

Or...maybe it's just a way for the IRS to justify hiring several thousand more people just to handle all this additional paperwork.

zagiace wrote in post #10996640
I very well could be wrong.
As i read it, it is not easily understood. It seems as though any purchase made by a business from any individual, business or corporation that is over $600 requires a 1099.
Previously, they were only required for rent, services and financial transactions. The sale/purchases of tangible goods will now also require a 1099.
Basically heard about it today from a friend and decided to google. There are several articles about it.
It is not in effect until January, 2012.

Haha, is ANYTHING to do with taxes/government easily understood?

I don't have the brain power to absorb all the information I read about it. I am sure, however, that it will suck....

This really is not an issue if you are not "hiding" income & expenses from what I've seen so far as there was already a long discussion on Sports Shooter months ago. The reason this new provision is in place is because of hundreds of billions of dollars that companies are "hiding" in their reporting, so now it gives two sources reporting the income/expenses so companies/individuals who operate a business actually pay the taxes that are legally due and they're not paying. That's good for us that do report everything, bad for those that don't - and to them, tough s**t!!

The problem everyone brings up is the paperwork, however, how it will all work has not been yet decided so we don't know exactly if it will be a huge burden or not. Many people complained it would be a paperwork nightmare and thus mean paying their tax preparers more because of the extra hours, but have read several things from those that prepare taxes that it will not be a big deal and cause the hours like people think. Until it's released of how it will be handled we don't know.

As for tax ID's, not much of a burden as now they'll be printed everywhere. Mine is on all my invoices/bills and you'll see businesses putting them on receipts and so forth now, nothing big there. Apparently there is going to be a database you can look up businesses as well to find it. If you use a SS# why not get a tax ID as it's easy to set up and doesn't cost anything.

Yes, it is a burden. A ridiculous burden. And the fact that it was hidden and stuffed into a healthcare bill shows that.... well, never mind.

I find it interesting, tho, that people are not also seeing it from the opposite side - that it may cut into sales.

If a company is using a shooter for product shots, or magazines, or whatever why would they want to try you out as a new shooter when they know it will only add additional accounting burdens and forms in triplicate to their tasks?

And what about mom Bertha? Instead of the burden of getting the forms, filling them out in triplicate, filing them with the IRS when you shoot her daughter's wedding, wouldn't it just be easier to have uncle Bob do it with his camera? Heck, he's a good amateur photog!

Think about it. There will be the reaction from some that hiring you or paying for your services or product will be a paperwork burden for them and as a result, they will avoid it.

Where did you see that? If you expect the federal government to do it--don't hold your breath. It has been mentioned that many wholesale businesses will probably make them easily available to their own professional customers, and I suspect that will be true. But government? Not gonna happen.

I don't think this will be a requirement for consumers at the very end of the retail chain. Consumers buying automobiles and stereos will not have to submit 1099 forms for Shady Sam Used Autos and Best Buy.