http://money.cnn.com/2010/05/21/smallbus.../index.htm

Quote:The new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards. Starting in 2011, financial firms that process credit or debit card payments will be required to send their clients, and the IRS, an annual form documenting the year's transactions.

The 1099-K is only required when a merchant has at least 200 payment transactions a year totaling more than $20,000. But it applies to all payment processors, including Paypal, Amazon.com, and others that service very small businesses.

All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to -- even if it's a giant retailer like Staples or Best Buy -- at the time of the transaction, or else facing IRS penalties.

In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction.

"Just with business travel it would include hotels, rental cars," Henschke says. "Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day."

I want a waiver.

Wait so does this mean that the IRS will have a list of everything that was bought and who bought it?

(12-20-2010 07:24 PM)BleedsHuskieRed Wrote:  Wait so does this mean that the IRS will have a list of everything that was bought and who bought it?

I don't know if they'll know WHAT.... but they'll damn sure know from whom, to whom, and how much .... for every plastic transaction.

I never thought I would use cash that often, I love my debit card, but it might be time to start going the cash route.

And we really wonder why businesses can't grow?

This sort of burdensome regulation destroys business and increases inflation. All for an alleged $300B that the IRS believes it's missing (no conflict of interest there).

Which really means another $300B sucked out of the economy, and now that's amplified by the collection requirements. So we're talking about $500B sucked out of the economy. That's a good 4% reduction in the economy right there, and probably far worse.

(12-21-2010 09:46 AM)DrTorch Wrote:  And we really wonder why businesses can't grow?

This sort of burdensome regulation destroys business and increases inflation. All for an alleged $300B that the IRS believes it's missing (no conflict of interest there).

Which really means another $300B sucked out of the economy, and now that's amplified by the collection requirements. So we're talking about $500B sucked out of the economy. That's a good 4% reduction in the economy right there, and probably far worse.

But, you forget, it's THEIR money. They're just letting us use some of it.

Fair Tax