Discussion:Will 1099 issues ever go away?

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Discussion Forum Index --> General Chat --> Will 1099 issues ever go away?


Actionbsns (talk|edits) said:

24 January 2014
I hate this part of the tax season. Once again there is a client who is disputing the need for a 1099 to a couple of people and sending terse e-mails to "Just do it"! I'm tired of having this really old argument about paying someone who provided you a service more than $600 and now they need a 1099 and you need to get the information. Is it really that hard?

EatonCPA (talk|edits) said:

24 January 2014
Yes, yes it is. I don't bother to chase or argue anymore. I do tell them straight up I will have to make a disclosure on their tax return that they were supposed to issue 1099s and didn't. After that, if the IRS man comes knocking, they can do the explaining to them.

Actionbsns (talk|edits) said:

24 January 2014
What about the pick and chose guys - "OK, I'll send that one, but this one shouldn't get one he just took a few pictures for my website."

Gazoo (talk|edits) said:

25 January 2014
I think it's absurd that the $600 number has not been adjusted for inflation; that step alone would cut out a lot of this foolishness.

My longstanding pet peeve is the client business gift deductible amount which I understand has stood at $25 since the 1950s. I would guess that would stand at at least $500 now, if not substantially more if it was adjusted for inflation.

Since Wall Street seems to be able to lobby for just about anything and they get it, I cannot understand why the retailers don't lobby for an adjusted figure on the gift deduction.

Nilodop (talk|edits) said:

25 January 2014
It was passed in '62 effective for '63. Bureau of Labor Standards says $25.00 then is $190.32 now.

Actionbsns (talk|edits) said:

25 January 2014
You are so right Gazoo. That's another conversation I'm tired of "But I only paid them $625, I promised him he wouldn't get a 1099, can we change it to $599?". I'm surprised Len that $25 from 1962 only equates to $190.32 in today's dollars. That's another factor that needs to change. Better go off and see if I can get online to my client's computer and do what needs to be done.

CathysTaxes (talk|edits) said:

25 January 2014
Hey Paula, I have the same problems. Each year, for one client, there is one person, no FEIN info (client rents a lot from him to store his trucks), so each year, the 1099 goes out without an FEIN. I've given the client blank W9s, but we always end up at the last minute scrambling (he just dropped off his canceled checks for Oct-Dec so I can finish entering them for the 1099s).

Spell Czech (talk|edits) said:

25 January 2014
In 1962 I think a gallon of gasoline and a pack of cigarettes cost twenty-five cents each. My grandfather told me.

Gazoo (talk|edits) said:

26 January 2014
Thanks, Nilo. Ok, we need to raise that business gift deduction to $200. Wouldn't this help the retailers? I am puzzled by the weakness of their lobby or maybe they have some reason for wanting it low. I don't know.

Actionbsns (talk|edits) said:

27 January 2014
Came in this morning to a kind of snarky FAX from the same client who was upset last year that I didn't know one of his vendor's was a corporation, because, well, "you've been doing this for so many years now". This year, he doesn't think I have enough 1099's for him and I should go check it again. Sometimes, you can't win for losing. And BTW, I charged him for every second of time it took to respond, along with a PIA charge,

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