For info only. 2012 is gonna be a very bad year for FFLs

[Adirondack Jack, SASS #53440]

Under Obamacare's "revenue enhancements" to pay for the plan, the government is mandating, starting in 2012 (and the Senate yesterday failed to kill off the bill) that every business that PURCHASES goods of $600 or more from any vendor in a year file a 1099 form for each vendor. Let's say yer an FFL and ya specialize in buying and selling stuff, and in the course of things, do a lot of business-to business TRANSFERS. Well for every business (other FFL for example) you do $600 worth of business with or more, yer gonna have to keep records of all his TAX INFO as found on HIS tax papers, tax id, corporate name, etc, and yer gonna have to file a form for each vendor. Of course there will be state forms for each 1099 as well. Ya gotta mail em to each business, and he of course has to file em, and so do you......

 

This is extremely onerous for the small businessman. Let's look at one transaction I just completed. I bought $1200 worth of stuff from a supplier, who in turn bought the stuff from somebody else, did some machine work, etc before selling em to me, and then I sold most of the stuff to a large distributor who is gonna move it to their retailers. By my count, Three sets of 1099s will be required for a deal like that, adding a labor cost to accumulate, maintain, fill out and file the forms for each of three steps along the way. What's more, since in a wholesale situation, margins are often figured quite slim, in part because it is a "quick and easy" sale of mulitple items, the added paperwork and data collection time and effort (the seller will have to give his info to the buyer, who will in turn have to make out and file the forms, as well as send em to the seller), that margin will increase AT EACH STEP OF THE PROCESS. Three 1099s, let's say each costs a real $50 in time and effort, ya got a $150 PRICE INCREASE for that small batch of goods, simply to cover the paperwork.

 

There are 38 MILLION businesses who will be effected. A guy pushing a hotdog cart is gonna buy stuff from the butcher, the baker, the wrapping paper guy, etc, and have to file all these 1099s....... A small hardware store that buys DONUTS every morning and puts em on the counter for his customers to eat for free will have to get and maintain the tax info and file a 1099 to report that yes, Mr baker got over $600 of his money in the course of the year (or just stop buying donuts) A florist that has bunches of office customers that buy flowers often will get hammered with bunches of 1099s they will have to research and verify the amounts spend (in dribs and drabs) by law firms, ins offices, etc up and down main street..... The consumer ultimately will pay, and the added burden may force struggling micro businesses to call it a day.

 

BUT it ain't 2012 YET. so maybe it won't happen. Maybe somebody will care.....

[Kiowa Kid, SASS #69870L]

Howdy,

I don't have a small business but feel your pain come 2012, I know thats their way of getting all the tax they can, but I feel it may have an opposite effect, more deals made under the table so less taxable income.

 

KK

[Manatee]

So, you buy fuel for your business truck at the same gas station.....they get a 1099.

 

You ship goods....UPS, FedEx and USPS get 1099's.

 

You take a trade-in at a gun show....the fella gets a 1099.

 

And don't forget to get SSN's or Federal Tax ID's from these suppliers or you'll be subject to audit and penalties for the IRS.

[Marauder SASS #13056]

They getting set up for a Value Added Tax or VAT, so they can tax the same item multiple times. Ugh!

[Lone Dog, SASS #20401]

The onerous fed machine must be throttled back and pared down or the nation is doomed.

 

Sooner the better.

[Nate Kiowa Jones #6765]

Howdy,

I don't have a small business but feel your pain come 2012, I know thats their way of getting all the tax they can, but I feel it may have an opposite effect, more deals made under the table so less taxable income.

 

KK

 

 

KK,

Yes, as a consumer you will feel the pain. What the average non-business person doesn't always understand is Business's don't pay taxes, fee’s or any other overhead expense. Customers pay. Overhead is always tacked on the final price.

Here is a good example. Awhile back California mandated that FFL’s sending guns to California had to sign up with their DOJ and then anytime you send a gun to Cal. you have to go on-line and get permission from the CAL-DOJ before you send the gun. I think it is stupid but I did sign up and do it. But, I also charge an additional $5 to the S&H part of my fees.

If small business folks are made to jump through these hoops look for prices to go up across the board on everything.

[Barterin Bill]

www.whitehouse.gov and click on "contact us" to send em a message about how you feel. They probably get tired of just getting messages from me. Make sure you use ".GOV" not .com. You might end up somewhere you don't want to be.

[Adirondack Jack, SASS #53440]

So, you buy fuel for your business truck at the same gas station.....they get a 1099.

 

You ship goods....UPS, FedEx and USPS get 1099's.

 

You take a trade-in at a gun show....the fella gets a 1099.

 

And don't forget to get SSN's or Federal Tax ID's from these suppliers or you'll be subject to audit and penalties for the IRS.

 

 

If you buy goods from a business totalling $600 or more for the year, you will have to issue to them a 1099 and they will have to file it, yes. Buy from an individual (trade-in) no, but transfer a gun from another FFL to your books, and in AGGRAGATE they are above $600 for the year, yes.

 

If I buy $600 worth of Grabber sights from BRO, expect a phone call and be ready to give me all your tax ID numbers, exact company name, addy, etc. Then I will be sending you a 1099, and I presume, filling out a tally sheet with all the 1099s listed, sending that in with my return so they can play "gotcha" if one of us screws up by twelve cents in our math. Of course I will also have to keep a separate ledger for each supplier (instead of simply adding up receipts for inventory purchased) so I know who to call. It's gonna be some fun....

 

And if ya PAY somebody to do yer small business taxes, expect to have to do a lot more data collection AND pay them MORE.

 

Oh, and the hidden "bomb" for folks like you and me, Manatee, is if "Cowboy Joe" buys stuff now and again, how do we KNOW if he's re-selling it or if it's for his personal use? Say over the year he buys $600 worth, and we DON'T issue a 1099 and it turns out he's not only "Cowboy Joe" but also "Pete's Gun and beer", we could be in deep doo doo.

[Sixgun Shorty, SASS #35717 Life]

This is all news to me! I have heard nothing concerning this until i just read this post.

I'm also a Class III dealer, so if it's ture, I'll simply give up my licenses in 2012(IF this is true, which I am not convinced of yet) and dissolve my company rather than put up with it.I am buried in paperwork..FFL is bad enough, but add Class III/SOT and it would be a paper nightmare!

[Adirondack Jack, SASS #53440]

This is all news to me! I have heard nothing concerning this until i just read this post.

I'm also a Class III dealer, so if it's ture, I'll simply give up my licenses in 2012(IF this is true, which I am not convinced of yet) and dissolve my company rather than put up with it.I am buried in paperwork..FFL is bad enough, but add Class III/SOT and it would be a paper nightmare!

Google "1099 bill and US Senate" for lots of hits. Here's two

http://politics.blogs.foxnews.com/2010/11/...al-timebut-soon

 

 

http://senatus.wordpress.com/2010/11/29/se...od-safety-bill/

 

As of yesterday, there is wide agreement this is a bad bill, but since it was PROJECTED to increase federal tax revenue by $15B or some such (nevermind the costs to business and to the IRS), the senate is deadlocked over who else to put it to to make up the mythical $15B (I say mythical because it amounts to hiring $100,000/yr cops to write $1 parking tickets, then spend money chasing the $1 fines to get em paid......., all the while making law-abiding folks jump through expensive hoops and in the end pay NO aditional taxes......)

[Ranger Sgt. Jake McCandless #3368]

Depending on how your club is set up with the state,non profit,ect. this might also effect the club. Just think outhouses,printing/ supply's,what have you that you spend over 600.00 for. I know we are trying to find out just what the effect will be for our club. If not repealed it going to be a headache and prices on many things are a Going up,just the plain hard truth . Adios Sgt. Jake

[Adirondack Jack, SASS #53440]

Depending on how your club is set up with the state,non profit,ect. this might also effect the club. Just think outhouses,printing/ supply's,what have you that you spend over 600.00 for. I know we are trying to find out just what the effect will be for our club. If not repealed it going to be a headache and prices on many things are a Going up,just the plain hard truth . Adios Sgt. Jake

If yer a business or a non-profit (most F&Gs are) this will apply.

[Ranger Sgt. Jake McCandless #3368]

If yer a business or a non-profit (most F&Gs are) this will apply.

Exactly ! Think it might cause the price for a shoot to increase,eventually I think it will have too. Along with every thing else in life! Adios Sgt. Jake

[Bulls Head Bill SASS#33692]

And FedGov GROWS.........and GROWS..............and GROWS

 

It'll take a LOT of Federal Bureaucrats to monitor those 1099's!

 

FedGov can't even guard our Nations Borders or tell us how many illegal alien invaders are in the country......... ...........do you think that they'll be able to monitor the 1099's?

 

[Ranger Sgt. Jake McCandless #3368]

And FedGov GROWS.........and GROWS..............and GROWS

 

It'll take a LOT of Federal Bureaucrats to monitor those 1099's!

 

FedGov can't even guard our Nations Borders or tell us how many illegal alien invaders are in the country......... ...........do you think that they'll be able to monitor the 1099's?

 

The best example I can think of how the Fed. would deal with them would have to be The United States Post Office,never mind Amtrak. Adios Sgt. Jake

[Chicken Coop SASS 5791 L]

I'm not an FFL.

 

However, I do have several small businesses, i.e. - Music Performance and Chemical Engineering Technical Consulting, both of which have been very active over the last 10-15 years. I issue 1099's to my $600.00+ suppliers on a regular basis as part of my businesses, and I have been doing that for many years now. I also receive many, many 1099's for my services if they exceed $600.00 per event/per client. I have been doing this for over 15 years now, for as long as both businesses have been around. The 1099 paperwork is part of my small business operations.

 

EXCUSE ME, but what the heck is all this Fuss/Bandwidth Topic about? As a small business owner/operator, I've been sending and receiving 1099's for years now. Am I missing something? If not, get a life guys. Find something else to whine about.

 

Chicken Coop

[Yellowhouse Sam # 25171]

Didn't they hire an additional 20k agents to help track all that? Talk about expanding govt. Between the EPA, OSHA, IRS, and other agencies this economy has not a chance.

[DOCBRAZOS, SASS#18033L]

60% of all the folks I know will have to fill out a 1099 on every Wal-Mart,Local gas station and grocery store in their area! 40% of the nation is on welfare and don't file tax returns anyway.. Oh well I degress............

100 of Million's of 1099's being shipped to the IRS. Maybe with the increase in weight of our tax returns the Post office will make a few extra bucks.

I can just Imagine the nightmare of receiving 4000 or so 1099's at a small retail business. Then filing an Amended Return Months later when a few more show up!

Heck I've never even sent my CPA a 1099. (But I probably Should but he gets to bill me sooner or later so I don't want to P$%% him off)

I've heard of this proposal but But I'm not gona losse any sleep over it yet. Lot's of screwy I Ideas come out of congress and never see the light of Day. Does Micro Stamping every Bullet made in America ring a Bell!

[Checotah]

EXCUSE ME, but what the heck is all this Fuss/Bandwidth Topic about? As a small business owner/operator, I've been sending and receiving 1099's for years now. Am I missing something? If not, get a life guys. Find something else to whine about.

 

Chicken Coop

 

Howdy, Coop.

 

I believe this change will require 1099's for all transactions aggregating more than $600, including materials. The current law (unless it's changed since I retired 3 years back) requires 1099's for labor purchased, not materials.

 

As to a VAT, or more preferable in my mind, a national retail sales tax, I think that could be preferable to all this paperwork and BS that surrounds the income tax. Wouldn't want to see a VAT or NRST on top of the income tax, but I think it could be a good replacement. Don't wanna take this thread political, however, so pls. just consider this to be worth what yuh paid fer it.

[Red River Ray SASS#33254]

I have straineed my ass off tryin ta keep my nose above water trying to keep my bus afloat for two years now, does this mean every bus I buy building mat from will get a 1099?

 

 

RRR

[Adirondack Jack, SASS #53440]

I'm not an FFL.

 

However, I do have several small businesses, i.e. - Music Performance and Chemical Engineering Technical Consulting, both of which have been very active over the last 10-15 years. I issue 1099's to my $600.00+ suppliers on a regular basis as part of my businesses, and I have been doing that for many years now. I also receive many, many 1099's for my services if they exceed $600.00 per event/per client. I have been doing this for over 15 years now, for as long as both businesses have been around. The 1099 paperwork is part of my small business operations.

 

EXCUSE ME, but what the heck is all this Fuss/Bandwidth Topic about? As a small business owner/operator, I've been sending and receiving 1099's for years now. Am I missing something? If not, get a life guys. Find something else to whine about.

Chicken Coop

 

You've been doing it for services, which is labor, and the 1099 is for INCOME on the part of a worker who sells his labor. They'

re expanding this concept to all GOODS purchased over the $600 level. Goods, unlike labor, are NOT nearly the same thing. If I buy $600 worth of boxes to put products in, that's not PROFIT, it's an expense. If the guy selling em to me pays $500 or $550 for em, he made a whopping $50 or $100, and now is gonna have to play the 1099 game for every little bit of nothing.

 

Seriously, on a $600 business to business wholesale transfer of goods, often the gross markup is only 15% or less, and that doesn't count the overhead. The goobermint ants to make sure we do lots of LABOR just to make a small profit on goods.......

 

You've been doing it for services, which is labor, and the 1099 is for INCOME on the part of a worker who sells his labor. I've paid taxes on 1099 income for labor performed as a freelancer, so i understand that.

They're expanding this concept to all GOODS purchased over the $600 level. Goods, unlike labor, are NOT nearly the same thing. If I buy $600 worth of boxes to put products in, that's not PROFIT, it's an expense. if the guy selling em to me paiys $500 for em, he made a whopping $50 or $100, and now is gonna have to play the 1099 game for every little bit of nothing.

 

Like I said, Joe's hardware has a tradition of putting a box of donuts on the counter every morning, a free gift to his customers. But he's gonna have to go beg Dunkin Donuts for their info so he can issue a 1099 to them..... Ridiculous!

 

Seriously, on a $600 business to business wholesale transfer of goods, often the gross markup is only 15% or less, and that doesn't count the overhead. Some purchases have no resale at all, pure expense, but the requirements don't differentiate. Heat yer shop with wood? yer wood man gets a 1099..... The goobermint wants to make sure we do lots of LABOR just to make a small profit on goods, and catch ANYBODY working for cash who sells to a business (what it's really about).......

 

What's more, I just spoke with a guy who runs a large LGS/sporting goods. He's had a perfectly legal method of accounting that will no longer be legal. he will have to keep vendor-specific accounts and run totals for each account (over a hundred of em), and play 1099 for each. He won't be able to call the "worm" guy and just place an order, pay em and put the invoice in his "cost of inventory" pile. Nope, "worm guy" now becomes an account, next each of several fishing tackle sellers, three brands of kayaks, two of snowshoes, gun related folks like brownells, the gun sellers, and lots of wholesale gun trading partners, the whole thing gets nutty.

 

And on the SELLING end, sometimes ya just don't KNOW who yer selling to. I know a few of my customers are FFLs, and expect some of what they buy from me is for resale, but since they are out of state, and there is no sales tax regardless, I don't HAVE TO record exactly who they are or what each buys. I only have to report cost of inventory and value of goods sold. But, under the new law, if "Joe Shooter" walks up and wants to buy $200 worth of brass, I have to REMEMBER, ON THE SPOT, did he already buy any other stuff for the year, and I HAVE TO KNOW (how exactly?) if he is a business, so I can try and make sure he gets my info and files the 1099 so we both report the proper info (or one of us is in trouble, maybe both of us). I have bunches of customers, especially bullet customers, who will spend over $600 a year, but I won't know which ones will initially, or which might be reselling, so I guess I gotta keep detailed records with ID on file for ALL SALES...... NUTS!

[Gateway Kid SASS# 70038 Life]

I have straineed my ass off tryin ta keep my nose above water trying to keep my bus afloat for two years now, does this mean every bus I buy building mat from will get a 1099?

 

 

RRR

 

Not everyone. Just those that you buy more than $600 worth of goods from. In our business we have 67 vendors we buy products from in excess of $600 each. We will have to send them all a 1099 beginning in 2012. We have an additional 51 vendors that we buy very small quantities of stuff from (less than $600) but we (and they) would like to see those purchases go up, then they would also be on our 1099 list. When my wife and I started this business 14 years ago between us we spent less than 4 days per month on government required paperwork, licensing, inspections etc etc. That has gone up to 14 days per month . When one spends nearly 1/2 of each month on gov stuff rather than business stuff then it is time to get into a new line of work. We thought we were going to work for ourselves not the government.

 

Regards

 

 

Gateway Kid

 

PS I am still unsure of what all those we sell our products to will be doing once this goes into effect but our average customer is usually a small business as well, sometimes down to a mom and pop or oner person operation. Their relative expense in compliance will probably sink at least some of them, causing us to be even more strapped and so on and so on.

[Adirondack Jack, SASS #53440]

Not everyone. Just those that you buy more than $600 worth of goods from. In our business we have 67 vendors we buy products from in excess of $600 each. We will have to send them all a 1099 beginning in 2012. We have an additional 51 vendors that we buy very small quantities of stuff from (less than $600) but we (and they) would like to see those purchases go up, then they would also be on our 1099 list. When my wife and I started this business 14 years ago between us we spent less than 4 days per month on government required paperwork, licensing, inspections etc etc. That has gone up to 14 days per month . When one spends nearly 1/2 of each month on gov stuff rather than business stuff then it is time to get into a new line of work. We thought we were going to work for ourselves not the government.

 

Regards

 

 

Gateway Kid

 

PS I am still unsure of what all those we sell our products to will be doing once this goes into effect but our average customer is usually a small business as well, sometimes down to a mom and pop or oner person operation. Their relative expense in compliance will probably sink at least some of them, causing us to be even more strapped and so on and so on.

 

 

As a sole proprietor who does NOT have full time to spend on a part time business, I will spend a LOT more time on data collection and maintenance simply because I will have to input every transaction where my customers are in business (after finding out who they are) into a database, an account for each, as well as keep the same records on the supplier side. Even a $30 purchase from a vendor MIGHT have to have an account if I think I MIGHT end up buying $600 in a year, etc.

 

Since I use the cost method of accounting now, which is fully legal, I only have to know HOW MUCH I spend and bring in, and I damned sure don't have to tell UNCLE SAM who I do business with. It chaps my hide that it will be absolutely wide open for the government to eyeball every business linkage in the country if this passes. How is it any of their damned business who I spend my money with so long as the products bought are legal, or who I sell to and for now much, again, so long as the products are legal. Sure, they get aggregate numbers NOW, but they don't have, at the flick of a keyboard, every stream of $$ and material in and out of my business, and I don't really think it';s any of their damned business if I buy $3000/dozen worth of widgets from Joe and sell em to pete for $4000, or sell em one at a time to fred, Nancy and John for $600 EACH.

 

If they tried to get that kinda info out of Halliburton, they'd be told to fly a kite. Halliburton won't even tell em what chemicals they pump into gas wells, let alone where they get em and how much they pay......

 

I'd rather spend that time, effort and money on the R&D side of my business, that time-consuming and risky part of the business that DOES generate income as well as create new products, etc, than simply doing square-filling exercizes that drain ya to death.

 

I'm quite sure many mom-n-pop stores that do cost accounting now will simply just bail out. They can't afford to hire a person to run a database just to keep up with this stuff when they are themselves working dark to dark running the actual business just to stay afloat.

 

So, like what happened when GOVERNMENT REGULATION got to burdensome in the retail gasoline business (all the mom-n-pop's are gone), folks will end up working for the "7-11" model stores instead of running their own business. Good deal there (not), considering the NICHE businesses account for over half the new business and new jobs created.....

[GunClick Rick]

Make copy of this article,place in hot pink or any bright folder,send a certified retrun reciept mailin to any and all cogressmen and women,senators mayors,vice president and president. Tell them no way Jose..

[Max Montana, SASS #23907]

I hesitate to weigh in on this without seeing an official printing of the language contained in the bill that was passed. The two supplied links are only referring to the repeal. But these don't seem to make sense on the surface. There has to be missing information or incorrect interpretation. The current $600 requirement for issuing 1099's to suppliers isn't just for labor. For at least the last 30 some odd years and probably longer the IRS has required any business that purchases goods and services in excess of $600 to have on file that suppliers tax ID(which in the case of a single proprietorship would be the social security number). If that supplier's information is not on file than the purchasing business must supply a 1099 to the selling business and copy the IRS. The IRS computerizes that information and compares it to the tax returns to verify that a business reports it as income.

 

So, for example, I purchase materials from lumber company to use in my home remodel business. That lumber company is required to report it's sales as income. So, I would have to have a tax number on file(could be printed on their invoice) for them. I wouldn't issue them a 1099. If the IRS doesn't believe the numbers reported by the lumber company, that's between their auditors and the lumber company's accountants to verify they reported 100% of their revenues. Given that the lumber company was in compliance, then my issueing a 1099 would not result in any additional tax revenue to the gov, because it was already self-reported by the lumber co. However, if I bought lumber from a company that didn't file a return and thus didn't supply me with a tax ID number then I would be required to issue the 1099 which would tip off the government that there was no business return being filed by and then the IRS would require the business to file a return and pay the tax due. This is the current system that is already in place. So, what is the new requirement that is being referred to in this post?

 

If this new bill simply means that all purchases from anywhere must have information on file, then 99% of that effort will not produce any additional revenue to the government because those monies are already being reported as income. For example, I don't have on file a tax ID number of Office Depot, but I've purchased more than $600 this past year in office supplies. I'd be surprised if they weren't reporting their sales. I've purchased more than $600 from sams club in cleaning products and trash bags and food products. I don't have their Tax ID on file, but if the government thinks that my issueing them a 1099 will get them to report more sales, it won't. They report those sales already. The IRS is much smarter than just to require reporting that won't increase their tax revenue. However, if there is some qualification in bills language that will capture a segment of business that is either not reporting their sales or under reporting then the government would get tax revenue that by law they should be receiving now. Only the language of the bill passed will shed light on this issue.

 

I could start an exhaustive research now to find the bill's language, but someone out there will direct me to it. If not, then it will be in my quarterly bulletin from the IRS, or my own tax accountant will receive notification which neither of them have mentioned a word as of yet.

 

I believe the citizens of this country pay an extreme overabundance of taxes. But, cutting taxes means that people will have to do without their form of government subsidy, which if listed would be longer than all the posts on this thread in its entirety! Who wants to give up their government check first? After all, as I hear most people say, "I deserve it"!

[Max Montana, SASS #23907]

I'll tell you what will impact a large group of people such as everyone that gets employer paid health care. Add up how much your employer paid for health care for you and go back to your last years tax return. Add that amount to your adjust gross income and then look up in the tax table how much more tax you would have paid.

 

If you don't have employer paid health care. Then check and see how much it will cost you to buy it for yourself, which I'm led to believe is also part of the requirement of ObamaCare. In any case, the citizen will be on the hook for more out of pocket cost while the government makes out like bandits! er...I didn't mean that literally, but now that I think about it, it sounds true.

[Guest Paniolo Cowboy SASS #75875]

I just don't see people complying.

 

I know there's a threat of audits and such, but it just seems that this new Obama law will have the opposite effect that it's intented to have. It won't raise tax money for more programs but instead it's push people into doing business in other ways. I think it may be more like Black Marketing.

 

At least that's what my take is on the whole deal.

[Adirondack Jack, SASS #53440]

I hesitate to weigh in on this without seeing an official printing of the language contained in the bill that was passed. The two supplied links are only referring to the repeal. But these don't seem to make sense on the surface. There has to be missing information or incorrect interpretation. The current $600 requirement for issuing 1099's to suppliers isn't just for labor. For at least the last 30 some odd years and probably longer the IRS has required any business that purchases goods and services in excess of $600 to have on file that suppliers tax ID(which in the case of a single proprietorship would be the social security number). If that supplier's information is not on file than the purchasing business must supply a 1099 to the selling business and copy the IRS. The IRS computerizes that information and compares it to the tax returns to verify that a business reports it as income.

 

So, for example, I purchase materials from lumber company to use in my home remodel business. That lumber company is required to report it's sales as income. So, I would have to have a tax number on file(could be printed on their invoice) for them. I wouldn't issue them a 1099. If the IRS doesn't believe the numbers reported by the lumber company, that's between their auditors and the lumber company's accountants to verify they reported 100% of their revenues. Given that the lumber company was in compliance, then my issueing a 1099 would not result in any additional tax revenue to the gov, because it was already self-reported by the lumber co. However, if I bought lumber from a company that didn't file a return and thus didn't supply me with a tax ID number then I would be required to issue the 1099 which would tip off the government that there was no business return being filed by and then the IRS would require the business to file a return and pay the tax due. This is the current system that is already in place. So, what is the new requirement that is being referred to in this post?

 

If this new bill simply means that all purchases from anywhere must have information on file, then 99% of that effort will not produce any additional revenue to the government because those monies are already being reported as income. For example, I don't have on file a tax ID number of Office Depot, but I've purchased more than $600 this past year in office supplies. I'd be surprised if they weren't reporting their sales. I've purchased more than $600 from sams club in cleaning products and trash bags and food products. I don't have their Tax ID on file, but if the government thinks that my issueing them a 1099 will get them to report more sales, it won't. They report those sales already. The IRS is much smarter than just to require reporting that won't increase their tax revenue. However, if there is some qualification in bills language that will capture a segment of business that is either not reporting their sales or under reporting then the government would get tax revenue that by law they should be receiving now. Only the language of the bill passed will shed light on this issue.

 

I could start an exhaustive research now to find the bill's language, but someone out there will direct me to it. If not, then it will be in my quarterly bulletin from the IRS, or my own tax accountant will receive notification which neither of them have mentioned a word as of yet.

 

I believe the citizens of this country pay an extreme overabundance of taxes. But, cutting taxes means that people will have to do without their form of government subsidy, which if listed would be longer than all the posts on this thread in its entirety! Who wants to give up their government check first? After all, as I hear most people say, "I deserve it"!

 

 

This is simple. If you use the cost method of accounting, you can currently buy $600 worth of say paperclips for your paperclip sculpture side line, and only report that as a part of your cost of inventory, and you retain the receipts to prove it at audit (if ya get audited) Under the new law, you would be required to issue a 1099 and report that on a tally sheet as well. Well suppose you REALLY bought $1200 worth of paperclips, (you sell some for cash at paperclip fairs and try and keep them off the books), under the new law you and your supplier would have to both be in sync, willfully lying to the IRS or ya'd get caught because his books wouldn't match yours and the 1099s would provide the searchable trail without an audit of either of you...... THAT is what they are trying to do. One of the potential amendments would exempt some purchases made by credit card because they already have access to that data.....

 

The "gotcha" methods aren't new. I happend to know a resaurant that went under after they got caught under-reporting income (sales of hotdogs at a county fair were not reported) and didn't pay sales tax on them. That led to a full scale audit and more issues, but it all started with some hotdogs. How pray tell did they get caught? the BAKERY they bought rolls from got audited and the state found out they bought $3000 worth of rolls at a county fair, then began digging...... Requiring 1099s for all B2B transactions would make that not a digging process but an automatic one.....

[Guest sawyer#34250]

1873 Rifle for Sale-$13.50 plus 986.50 in shipping and handling charges.

[Nate Clayton, SASS #63196]

...but 'they' said we'll like it....once we find out what's in it........right?

 

I heard about this component months ago. There is plenty to be upset about. Plenty.

 

Google Jason Mattera and find him on Youtube. He ambushes senators and congressman with questions about this bloated junk of a law.

 

The mandate is enough to make me sick.

 

-Nate

[Guest Joe West, SASS#1532 L Regulator]

Good one Sawyer!

As for me business wise, things will have to get better before I can tell they're getting worse.

Joe

[Chicken Coop SASS 5791 L]

My original topic post/reply comments still stands. Jeeesh!

 

Chicken Coop

[Checotah]

And don't forget to get SSN's or Federal Tax ID's from these suppliers or you'll be subject to audit and penalties for the IRS.

 

Also don't forget any time you buy something in excess of the trigger limit, you will need to provide your SSN or TIDN. That means anytime you buy a new computer, TV, doors or windows for your house, etc., you and the Gov't. will be receiving a 1099 for at least that amount.

[Max Montana, SASS #23907]

So AJ if I understand what you're saying. I sell some of my extra paperclips and try not to report the income even though it is income and taxable by law. The IRS would be able to prosecute. Well, that seems right. The law requires one to pay taxes on net income. I would be able to subtract the cost of the paper clips from the sales revenue and pay taxes on the balance. If I were to not report those sales, I would be in violation of the law. Can't fault the government for trying to get their pound of flesh.

 

Now , that being said. I vehemently disagree with the tax laws. They should be changed. They are next to criminal. But we must change the law not violate it.

 

Sawyer, your tax bill would be based on the $989.50 monies received less any business expense incurred such as the actual cost of the rifle plus shipping, insurance, advertising. You can call stuff any name you want. All the IRS cares about is how much money you received and what cost was incurred to receive it. You pay tax on the difference.

[Marshal J.D. Oak, SASS #35459L]

That does it. I'm never buying or selling anything again.