[FoRK] 1099 will end the world in 2012

owen at permafrost.net owen at permafrost.net
Fri Jul 23 11:30:16 PDT 2010


On Fri, Jul 23, 2010 at 11:12:35AM -0700, Ken Ganshirt @ Yahoo wrote:
> --- On Fri, 7/23/10, Jeff Bone <jbone at place.org> wrote:
> 
> > 
> > Worth breaking the silence...  Keeping you
> > informed...
> > 
> >   http://academicvc.com/2010/07/23/2012/
> > 
> 
> Hi Jeff,
> 
> I don't know if you're watching for responses. I have to disagree with one of your observations. I think for the class most impacted by this -- small businesses and the self-employed, it may well be preferable to suffer the nuisance of spreading the purchasing around than to have to do the paperwork. Unless they can find, say, a single supplier who can satisfy all their needs.
> 
> Regardless, it's a thought process that millions of small businesses and self-employed will have to go through when they shouldn't have to.
> 
> It sounds like a form of economic wrist-slashing when you consider that small businesses and self-employed are something like 60% of all jobs. On the one hand, the honest ones will either be slowed in their growth or simply shut down. On the other, it will create a new class of "criminals" who become rather forgetful about where they've put all their receipts and who have great difficulty adding beyond $599.
> 
>         ...ken...
> 
> 
> 
> 
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http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/

'In a late May speech before the two payroll industry trade group, IRS Commissioner Douglas Shulman announced a major exception to the new rules: The IRS plans to exempt transactions made through credit and debit cards. A separate reporting requirement kicks in next year that will cover card transactions and help the IRS spot unreported payments made through those channels, "so there is no need for businesses to report them as well," Shulman said. "Whenever a business uses a credit or debit card, there will be no new burden under the new law."'

This probably exempts the vast majority of small business transactions. Perhaps the hand-wringing can stop now. 

Owen



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