Notice to self employed, freelancers, and small business owners

[sgreger1]

http://money.cnn.com/2010/05/05/smal...change/?hpt=C2

Starting 2012, under the new health reform bill, anything you buy over 600$ means you must send a 1099 to the company you bought it from to ensure everyone is paying their taxes and reporting how much they sell and spend.

An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.
Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.
The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.

[texasmade]

I won't do it....it's called pay cash and don't leave a name

[sgreger1]

But businesses can't do that. If im a small business and I want to buy $600 worth of printer ink, to buy it I am legally required to send a 1099 now. No corporation is going to let you pay them in cash off the books. There's no way around this.

I am just worried because my family owns a small business and this will surely have an affect on them.

[texasmade]

buy it as a personal computer. you pay your self when you run a small business. buy it "for home" and take it to work

[WickedKitchen]

Yes, paying cash will alleviate this but it'll cause bigger problems in the future. Think business and the business of government is corrupt now? Heh, wait until everyone starts paying cash for things.

This is only going to make taxes and such even more confusing.

[Darwin]

The introduction of this form and requirement sounds like a plan to get the public prepped for the introduction of a Value Added Tax or VAT which may be coming soon to a federal legislature near you.

[tom502]

Or the end of cash, and every transaction must be made with cards.

[danielan]

I am failing to see the value of this.

It seems like a flood of paperwork for very little return.

[timholian]

The introduction of this form and requirement sounds like a plan to get the public prepped for the introduction of a Value Added Tax or VAT which may be coming soon to a federal legislature near you.

Yes sir.

[texasmade]

Or the end of cash, and every transaction must be made with cards.

finally a reason for a f*cking riot

[sgreger1]

Understanding the tax law is very difficult unless your rich enough to pay someone else to cheat the gov for you. When my dad worked as a handyman/apartment manager/contractor, he was self employed, and didn't pay a dollar in taxes. This was because the income tax cannot touch property and the supreme court long ago ruled that a man's work is his property. So through some obscure tax loophole he managed to perform labor in exchange for money and since both parties agreed that the trade of labor for money was an equal trade, the whole thing went down as a barter between two individuals, in which no income was earned, but rather two things of equal value were traded.


But more on topic, small businesses like restaurants here in san francisco are owned mainly by immegrants and I am positive that 99% of them do not pay the "right" amount of taxes because they do a lot of things in cash etc. So I am wondering how this will affect them.

[texasmade]

it won't. trust me.

[danielan]

finally a reason for a f*cking riot

IMO introducing a US VAT would finally be the reason for the riot.

[sgreger1]

IMO introducing a US VAT would finally be the reason for the riot.

Oh it's coming. bet your ass they'll push it. If not this year than the next, if not then than our next president will. Many other countries do it so they know they can get away with it here.

[texasmade]

Oh it's coming. bet your ass they'll push it. If not this year than the next, if not then than our next president will. Many other countries do it so they know they can get away with it here.

good thing they let us still buy guns