Discussion:New 1099-misc reqmts - excerpts from a prior discussion
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Discussion Forum Index --> Tax Questions --> New 1099-misc reqmts - excerpts from a prior discussion
| 23 May 2010 | |
| This discussion contains excerpts from another discussion that was moved to the Chat Forum (the original, which still exists in its entirety, was moved out of the tax forum because posts about the politics behind the bill overwhelmed the discussion about the impact of the bill on clients and tax professionals). The intent of starting this new discussion is to end up with a useful TAX discussion about this legislative change. | |
| 25 March 2010 | |
| Found this real depressing:
HR 3590. SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.
So I have to send a 1099 to Staples? | |
| 25 March 2010 | |
| The IRS has been working to have 1099 issued to Corporate Entities. | |
| 25 March 2010 | |
Two questions:
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| 25 March 2010 | |
| Yes, yes, nope and yes. You can also view a CCH Tax Briefing at www.cch.com.
So another example. Lets say I have 10 delivery vans. My drivers stop at the same gas stations over and over through the year. Gas stations aren't owned by Chevron, Mobil, etc. So now you have to determine the name and FEIN of every gas station they use and send them a 1099. So what happens if the station is sold during the year? What about national companies that are actually franchises? When you buy computer software you are actually leasing the software, does that count as a "amounts in consideration of property"? What about the phone company? I could go on and on. I really need to get a life. | |
| 25 March 2010 | |
| TTMM: How do the employees pay for the gas? Are they using a credit card, check or cash? If cc, the payment go to the credit card company. Who gets the 1099? | |
| 25 March 2010 | |
| EXTRAPOLATE THIS TO...everyone or every entity a business pays gets a 1099, and then "match" the 1096's issued by a business to the reported expenses of the business, and audit those that appear to be outside some "tolerance" range.... | |
| 25 March 2010 | |
| With all the new provisions I think the IRS computers may not be functional in 2013. | |
| 25 March 2010 | |
| TTMM looking for the CCH tax briefing...could you be a little more precise about that...i have to show this to my employer who insists that person is not a corporation... | |
| 25 March 2010 | |
| bottom right on page 7
http://tax.cchgroup.com/Legislation/Final-Healthcare-Reform-03-10.pdf | |
| At this point CPAdavid also posted an offsite link to the entire legislative text. That interface was awkward to use IMO, but at the time the text wasn't readily available on Thomas, or on any of the usual Senate/house committee websites. Now that the bill content, summary, etc., are available elsewhere, I'll substitute his link with the one used by TaxAlmanac's main page article on the Act: Senate Finance Committee - the top link goes to the final legislation as signed.
David also made a comment about feeling free to read the entire bill... | |
| 25 March 2010 | |
| Also feel free to poke yourself in the eye with a sharp stick, it'll hurt about as much as reading that thing... | |
| March 25, 2010 | |
| So what is the connection of this section to the health care bill? (I know, there doesn't have to be one.) But, how is the government going to know who should get credits and whether employers have provided insurance to everyone they are required to (does it include part-time employees as well?)? I guess this means the insurance companies are going to have to report how much was paid to them for premiums and how many people were covered, etc. Hmm, sounds like lots more work for tax preparers. | |
| 25 March 2010 | |
| Thanks CPADavid I've been out of the office all day. I originally started looking at the CCH briefing and then went to the entire bill to review the particulars because I couldn't believe it.
Tbm103, does it matter? Unless you are reimbursing the employee aren't you still paying the gas station? Natalie, if you look at this portion of the bill it is specifically entitled "Revenue Provisions". My gut feeling is that they will increase enforcement on businesses not filing 1099s to pay for the give-aways. In answer to your other question, the employer is required to report the health insurance premium on the employees W-2. The the IRS knows which businesses have "cadillac plans" and should be paying the excise tax. I think I'll go find the sharp stick now. " | |
| 25 March 2010 | |
| Hey. Stick in the eye is for the "tax preparers". For accountants it's not really a big deal. Decent software prepares vendor reports and by the time this rolls around the software will also generate the 1099. (Although the last time I looked Quickbooks still hadn't gotten around to finding a way to total those reports...♫) And think of all the fun the IRS as going to have processing with nothing to match. | |
| 25 March 2010 | |
| they won't even turn the switch 'on' to try to match for three or four years | |
| March 25, 2010 | |
| Natalie, there's a provision I thought most folks knew about: every employer will be required to include on the W2 (yeah, lucky us, one more thing to do) the amount of health insurance benefits provided to each employee. And you think getting med ins. info for our S corp owners is tough. Wait. We ARE the cops for this, didn't you know? | |
| March 26, 2010 | |
| Actually, I wasn't aware of that, JR. I was thinking the reporting would come from the insurance companies because they are the ones who would verify that premiums were actually being paid. Doesn't that make more sense? Employers can be penalized for not providing health insurance, so the motivation is to make it look as if they are. This becomes even more important when the employer credits are considered. | |
| 24 May 2010 | |
| Bump to get this special "excerpt" discussion onto the Tax Forum index. | |
