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|| SportsShooter.com: Member Message Board
Sending out form 1099 for purchases
Chad Greene, Photographer, Photo Editor
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Mark Peters, Photographer
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Highland | IL | USA | Posted: 10:55 AM on 05.09.10 |
->> It's not clear (at least to me, but I'm still half-asleep)if the trigger is a single transaction $600 or more, or payments in aggregate of $600 or more in a given year.
I'm waiting for the look on the 16 yr. old cashiers face when I ask him/her for Best Buy's taxpayer id information. |
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Clark Brooks, Photo Editor, Photographer
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Urbana | IL | USA | Posted: 12:22 PM on 05.09.10 |
->> Mark: If you spend more than $600/yr with a business.
I agree with you about the nightmare of asking for the Tax ID from the minimum wage employee. Just think, every gas station you purchase gas for a business vehicle, we now will have to get thier ID number, find out if they are owned by the same parent company and track purchases from that company. |
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Mark Peters, Photographer
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Highland | IL | USA | Posted: 12:31 PM on 05.09.10 |
| ->> I wonder how long it will take the credit card companies to develop a service to do this for us. |
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Clark Brooks, Photo Editor, Photographer
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Urbana | IL | USA | Posted: 12:39 PM on 05.09.10 |
->> I'd bet AMEX will be the first.
On the bright side, this will be a big boon for the US Postal Service! :-) Kind of a bailout system for them! January 2013 will be like Christmas all over again for them since the forms will likely have to be sent via paper. |
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Joseph Tames, Photographer, Assistant
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Palm Desert | CA | | Posted: 4:31 PM on 05.09.10 |
->> Lets not get to crazy about this.
I have spent 26 years as a tax and accounting advisor and this is not as big of a deal as everyone is making it.
Every business will now put their tax id number and contact information on the purchase receipt.
I see it done on independent contractor invoices, child care reports, charitable organizations and some medical facilities.
Plus, I understand the need to keep expenses down. Unlicensed construction contractors don't pay taxes anyway, which lowers the cost on their bids. Do you think Sally or Sam Photographer is claiming their Shoot and Burn income from weddings or Senior Pictures?
This could make professionals stand out more. |
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Jon Wright, Photographer
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Wayzata | MN | USA | Posted: 5:16 PM on 05.09.10 |
| ->> I know Jon Photographer claims all his wedding and senior photography. |
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Kevin Krows, Photographer
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Forsyth | IL | USA | Posted: 5:12 AM on 05.10.10 |
| ->> Great...freely distribute ss#'s (which many small businesses use as their tax id) to my clients. Now there's a great idea. |
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Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 8:35 AM on 05.10.10 |
->> This is one instance where contacting your congressman and senators would be a excellent idea.
I'm involved with a national trade association and I can tell you, we're going to rally the troops on this. I can appreciate the intent, but this could seriously impact small business depending on how the regulations are implemented. That's the real concern, Joe. On the other hand, it could stimulate more business for accountants :-O .
Michael |
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Eric Canha, Photographer
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Brockton | MA | United States | Posted: 10:02 AM on 05.10.10 |
->> Michale there is already a bill introduced to repeal this section of the new law. While I think that it COULD be a PIA I also think that it can be done is such a way that is easily incorporated into everyone's accounting work flow.
Printing a TID on the bottom of all receipts/invoices solves the first problem of collecting data. We don't know Best Buy's TID right now because there is no need to know it. If and when this goes live everyone is just going to add it to the bottom of the slip.
Quickbooks and other accounting programs will most likely add a module or routine that will either print out a report of the vendors that you will have to fill 1099's for OR hopefully by then the IRS will have a way of letting these accounting programs file the batch for us electronically.
I'm really conflicted on this one. At first I was pretty negative on the idea. Then the more I thought about it and how it really isn't THAT hard to do I've lost some of that fire. For ME everything that I write off already has a receipt issued and if the companies print a TID on them things things are pretty easy. Will people be able to rely on shoebox accounting much longer.... nope. Those days are numbered.
I don't know but I'm thinking that this will be a bigger deal for PAC's trying to get a TID from the pole dancer that just walked away with $1500 in tips.
BTW that was an equal opportunity jab as both parties have stripper issues.... Save the hate mail. |
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Jody Gomez, Photographer
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Murrieta | CA | USA | Posted: 11:14 PM on 05.22.10 |
->> "Great...freely distribute ss#'s (which many small businesses use as their tax id) to my clients. Now there's a great idea."
Kevin, your comment is exactly why I advocate getting (and using) a federal tax id number for your business. It's free, easy, and instant. Just follow the instructions on this page http://www.irs.gov/businesses/small/article/0,,id=102767,00.html and it will show you the way.
Jody |
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