New 1099 rule for small businesses

[Marcelle]

I just received an email from NNEP about a new requirement regarding 1099's for small businesses that is buried in the new healthcare bill. Others might be interested in this. It can be viewed on the NNEP site by pasting the following link in your address bar. I did not know about this.

https://app.e2ma.net/app/view:CampaignPublic/id:1350139.6116387645/rid:344150330e65dbbdff1345c7f7211aa3

[Dorothy Compton]

I heard about it first from a radio talk show (Tom Sullivan) and then my congressman who is joining with others in trying to repeal it. The government really doesn't like small business, doesn't trust small business and would like to have all transactions go through them....for a fee of course.

Dorothy

[Maureen]

It's all about control. And making the IRS an even bigger monstrosity than it is. Oh, I guess that's "creating or saving jobs."

[Marcelle]

I had not heard about it but am glad to find it out. The NNEP email has a link to find contact information for lawmakers. Maybe a lot of people will use it.

Not everyone would even have accounting software to accomplish that. There are penalties for filing 1099's that are not exactly correct. Can you imagine getting big companies & individuals as well to fill out the tax forms that would be required in order to file correct SS numbers, FED ID numbers along with their correct tax filing addresses.

Someone stuck that in the healthcare bill that had never prepared a payroll or sent out 1099's & W2's.

It sounds like the best way in the world for terrorists and criminals to steal identities. Everyone's information would have to be public in order to accomplish this.

What is it doing hiding in the healthcare bill anyway?

[signman]

I've been getting requests for a form with our tax id and info for years from any company I've sold over $500 all along-and mostly from the non-profits to prove where their money is going. I'd want to check and see if there is a minimum 'yearly gross' for a business to hit before they have to do the 1099's...in NH the state has a $150,000 or so 'minimum before you have to file state business profit tax paperwork...since that is NET not gross we haven't had to file it yet in 30+ years.
So before any panics I'd see if someone has ALL the paperwork to explain what this bill is going to require.
And chances of it passing anyways...by the time it does I'll be retired I bet...
Roland

[Theresa S.]

This is not new here on the "left" coast. I got a 1099 several years ago from a company I had done some work for. I was quite suprised.

[Maggie21]

Thank you Marcelle for telling us about this 1099 issue.

[Marcelle]

I apologize to any members that are offended by my post of the link sent to me by NNEP about the 1099 reporting enforcement. I did not intend for it to be a political statement.

I thought I was posting information that could possibly affect members of this list. That is why I posted it in the business section. I was glad that NNEP sent it to me. If there is a new law I personally want to comply. I haven't been able to find the text of the bill online to verify it. The link to the text of the bill gives a message now that it has been removed from the site. There is a heading though that says the bill contains provisions to close loopholes in reporting. If anyone finds out what the exact story is on this I would appreciate receiving a private email so no one else will be offended.

[Shuffletown Embroidery]

No need to apologize. This is important information.
I got the same thing from NNEP, but never thought to pass it along to this group. Thanks for sharing.

[Wayne]

Just another power grad by our CHANGE government.

I'm so glad I grew up in the 50's and 60's. Could leave your doors open, economy was growing and people cared more about others and America than they do today. And government red tape was a lot less than now. The best years in AMERICA.

As for the 1099's, you will just have to use your head and do like your government does,CHEAT and LIE. There will be a lot of tickets less than $500.00 being made in the future under different names. Who can afford to hire someone to do your bookwork?

Smile and be happy.
If not you will really become something you don't want to be. You will be one of them.

[Mr. Sew & Sew]

There's a lot more in that healthcare bill than people think or know about.

I also own a tanning salon. Beginning July 1, I have to charge a 10% tax on all UV tans. This has gotten little press.

So starting in a mere 9 days, I have to charge and remit this tax yet nobody from any state or federal agency has contacted me to tell me about this tax, how I am supposed to collect it and remit it.

I also had to spend $750 to buy new software for the salon that will calculate a 10% federal tax in addition to a 7% state sales tax. But lotions are expempt from the federal tax but not the state tax which complicates matters even further.

What this has to do with healthcare, I don't know, but its another hit to small businesses. I will lose business because of the tax and yet I have to spend money to comply with it.
Welcome to Obamaland.

[Maggie21]

Yes, the bill was over 1000 pages (I believe 1200)and the people that voted for it didn't even read it. I heard from several sources that there was a lot of "pork" in it and hiden taxes.
Wait until we find more "surprises".

Maggie

[Wishes]

As of April 15th 1099 is no longer a law according to the website listed below. Hopefully this will put some of you at ease. Margaret

http://www.taxgirl.com/controversial-1099-reporting-requirements-repealed/