1099 reporting

[Market Harmony]

For those of you that don't know, there was a provision worked into the recent HealthCare Law that would require small businesses to file 1099 forms for all transaction $600 and more. This would have KILLED the coin collecting and bullion trading market. I have URGED all readers of this previous realcent thread (http://realcent.forumco.com/topic~TOPIC_ID~17045.asp) to contact your representative regarding the repeal of this provision which was surreptitiously included in HealthCare.

This week the Senate will be focusing on the issue. Keep tuned in and,
FOR EVERYONE'S SAKE, CONTACT YOUR REPRESENTATIVE YOU LAZY BUMS!!!!!


Congress takes up small business

http://finance.yahoo.com/news/Congress-takes-up-small-cnnm-4146883488.html?x=0&sec=topStories&pos=6&asset=&ccode=
Catherine Clifford, staff reporter, On Tuesday September 14, 2010, 8:15 am EDT

Lawmakers return to Capitol Hill this week after the summer recess and small business tops their to-do list.

Their goal: Help small business, and boost the economy. The Senate will consider two proposals right off the bat.

The broader measure is the Small Business Jobs Act, which includes a $30 billion fund to spur lending and $12 billion worth of tax breaks. The Senate will also decide whether to repeal a law enacted as part of health care reform that will require small businesses to file millions of new tax forms -- a provision a top Republican calls "job killing."

Main Street needs the help: Credit remains hard to come by, and without it hiring is suffering. In fact, small business hiring has been on a downward slide for the past two and a half years.

And both the number of small business loans and the total value of those loans have declined, according to data from the FDIC. The number of loans has dropped by 17.8% since the second quarter of 2008 and the total value of those loans plunged by $60 billion to $650 billion.

Large firms can get access to credit by selling stock and corporate bonds, but most Main Street businesses don't have such an option.

"Small businesses, which are more dependent on bank lending to meet their financing needs, are still experiencing problems accessing credit due to the continued tight lending standards and banks and have been unable to increase hiring," the congressional Joint Economic Committee wrote in a report released Monday.

With the unemployment rate still flirting with double digits, pressure is mounting on Washington to create jobs.

$42 billion lending bill: President Obama started pushing for ways to get cheap capital to small businesses nearly a year ago.

The Small Business Jobs Act authorizes the creation of a $30 billion fund run by the Treasury Department that would deliver ultra-cheap capital to banks with less than $10 billion in assets.

The idea is that community banks do the lion's share of lending to small businesses, and pumping capital into them will get money in the hands of Main Street businesses.

The bill would also provide $12 billion worth of tax relief for small businesses between 2010 and 2020, according to a preliminary estimate from the Joint Committee on Taxation.

In addition, it would increase Small Business Administration loan limits and extend loan sweeteners through the end of the year. It offers a slew of tax cuts to both encourage investment and entrepreneurship. And the legislation provides $1.5 billion in grants to state lending programs that can't turn to empty state coffers for more cash.

Tax form mayhem: But first, on Tuesday, the Senate will take up bills to repeal or amend the health care law's expansion of tax reporting requirements.

A small section of the massive health care law mandates that beginning in 2012, all companies will have to issue a 1099 tax form not only to contracted workers, as they must already do, but also to any individual or corporation from which they buy more than $600 in goods or services in a year.

The IRS Form 1099 is used to document income for individual workers other than wages and salaries: Freelancers get them and businesses send them out. Under the new law, the 1099 form would be used to track payments for services and tangible goods. Also, it requires that 1099s be issued not just to individuals, but to corporations as well.

The result would be millions of additional tax forms.

The federal government loses more than $300 billion each year in tax revenue on income that goes unreported, according to the IRS. The 1099 provision aims to capture more of that tax revenue, while offsetting the cost of the health care law.

While major corporations have entire departments of staffers and computers to deal with tax requirements, most Main Street business owners wear the tax preparer hat themselves, or have to pay a tax preparer to do it for them.

"We have a Nebraska business who says it is going to cost him $23,000 a year in CPA fees just to file all this crap," said Steve Wymer, the communications director for Sen. Mike Johanns, a Nebraska Republican who has proposed an measure to repeal the requirement entirely.

House Minority Leader John Boehner called the 1099 tax requirement "job killing" in a speech last month. "Talk about overhead."

The U.S. Chamber of Commerce sent a letter to members of Congress on Monday with 2,434 signatures from businesses and associations calling for repeal.

Meanwhile, Sen. Bill Nelson, a Florida Democrat, has countered with a more moderate proposal: All businesses with fewer than 25 employees would be exempt from filing the additional tax forms for the payment of goods. For all other businesses, the reporting threshold would be raised to $5,000. Credit card transactions would be exempt altogether.

The Senate is set to first take up Johanns' measure and then move to Nelson's version on Tuesday. It's unlikely either will get the required 60 votes, but the issue is expected to debated and lobbied in coming days.

[NiBullionCu]

Congress critters contacted.

I urge everyone else to do the same.

helpful links:

http://www.senate.gov/general/contact_i ... rs_cfm.cfm?

http://www.house.gov/zip/ZIP2Rep.html

[Market Harmony]

Congress critters contacted.

I urge everyone else to do the same.

helpful links:

http://www.senate.gov/general/contact_i ... rs_cfm.cfm?

http://www.house.gov/zip/ZIP2Rep.html

Thank you, thank you, thank you!!!!

We need more involvement

STOP GETTING RUN OVER BY GOVERNMENT AND DO SOMETHING PEOPLE

[moboman]

Here's an article with 2 form letters whether you are a collector or dealer.
http://www.coinlink.com/News/clubs-asso ... uirements/

[Country]

DONE!!

Contacted both Senators and my Congressman....

[Nickelless]

I just talked to Sen. Dick Lugar's office and the repeal failed about an hour ago on a vote of 46-53. Heads are going to roll.

[Country]

I just talked to Sen. Dick Lugar's office and the repeal failed about an hour ago on a vote of 46-53. Heads are going to roll.

Got a link to see how all the Senators voted?

[Nickelless]

I don't have a bill number yet on the repeal measure. I don't know if I'll have time to dig one up before I go to work, but I'll keep my eyes open.

[Pennysaved]

According to the ANA article, the bills are:

HR 5141 and S. 3578

How do you look them up to see the votes?

[Thogey]

Hell I'm still working on the 20K internet sales reporting req.

Don't worry MH, If you keep good records, and can prove you cost basis it won't affect you.

It's just a reporting reqiurement for business so don't worry.

BTW, some of you can sense sarcasm and.. no I will not let that conversation go.

This BS makes me sick, I might even consider all cash with my vendors and ...hope I don't go to jail

[Rodebaugh]

Cash is King.....well next to pm's that is.

my senator has passed on.....god bless that man and what he has done for my state.

Guess I could call up Jay.

[Country]

The Latest Update on the 1099 Issue

http://www.coininfo.com/page/The+Latest+Update+on+the+1099+Issue

[Sheikh_yer_Bu'Tay]

Avoid the latest social disease! It is called "Gonna'rea-lectum"

Take the cure! VOTE 'EM OUT!!!

[fasteddy]

looks like the Dems vs the Reps and then the Reps vs the Dems...whats new....soon the Dems will be out...WOOHOO! gonna get some bizness on then!

[Thogey]

Lets review this
Has this been a problem for any one?
Seems to have died out, thank god.
no one was going to comply any way.

Kinda like the upcoming private gun sale laws.

[Market Harmony]

Nothing came of it because it was voted down.

[Thogey]

Nothing came of it because it was voted down.

No, It was repealed.
It would not have been a big deal for you anyway.
(still sarcasm, you did not have my back on my bitch about the internet sales reporting requirements)

Just a matter of simple record keeping you said.
I was ready to go to war over this.

[Market Harmony]

Nothing came of it because it was voted down.

No, It was repealed.
It would not have been a big deal for you anyway.
(still sarcasm, you did not have my back on my bitch about the internet sales reporting requirements)

Just a matter of simple record keeping you said.
I was ready to go to war over this.

huh?!?!

again... what?!?!

[Thogey]

Yea I guess I'm holding a grudge.
I kinda referenced it here, viewtopic.php?f=23&t=3055 , But YEARS ago on old RC I brought up a bitch about new 1099 reporting requirements with pay pal.
And you gave a lecture about how we all should know enough to keep our cost basis records for the write off.
Mike. You have to understand my mind is like a steel trap when it comes to these things. You called me a cry baby!
think you even posted a picture of a little kid crying!

Time to let it go. you know I love you

[natsb88]

There's a pretty significant difference between receiving a single 1099-K with a $20,000 minimum threshold from a payment processor for your business, and being required to collect information from and file dozens or hundreds of 1099s against individual customers with only a $600 threshold. The 1099-K didn't change anything about how I run my business. The other 1099 scenario would have meant a legal obligation for me to collect SSNs and file tax forms against numerous Realcent members. Apples and oranges.

[Market Harmony]

I never harbored any ill-feelings for you, Thogey. I can't imagine that I meant to purposefully open any wounds, but I guess I could have if I posted a picture of a crying kid (I do remember the picture). That's harsh and over-the-top. Please forgive my transgression of good manners. I only joke with people that I like.

I still stand by my statements of reporting requirements. Just do the paperwork. It's not fun, and it burns when you think that it is the tax man that is trying to get a little skin in the game. Thankfully, we avoided the $600 1099 requirement. That would have REALLY killed a lot of small businesses, and increased the cost of doing business for even the larger guys. It was a ridiculous provision and it needed to be repealed. It made me have a special disgust for politicians that try to bury these kind of provisions into larger legislation.

I wrote to my congressman and received a response from him. A good man that heard his constituents... He was not re-elected, and my gut tells me that this was because he did not tow the Democrat party line on the Health Care Reform Act.

As far as the hobby level coin/bullion enthusiast, the only thing that I can think of that might be an issue is if some entity DOES 1099 you... whether PayPal or some other business. Then you will have to show that income on your taxes. However, if you can show corresponding receipts (costs), then you will only have to pay taxes on just profits and not the entire revenue. The reason for the PayPal hoopla was that most individuals don't have the receipts.

My thought is that if you have $20k in revenue through PayPal, whether PM related or not, then you are conducting business activity. They will 1099 you. If it is liquidation of a collection from a hobby, which would assume that no receipts are available, then I would imagine that a tax professional needs to be contacted. If you don't like these facts, then a sale of the collection to or through another party needs to be considered.

I do have sympathy for the individual with no record of purchase, but until there is some law or code written around it, the revenue needs to be reported as profit.

[Thogey]

There's a pretty significant difference between receiving a single 1099-K with a $20,000 minimum threshold from a payment processor for your business, and being required to collect information from and file dozens or hundreds of 1099s against individual customers with only a $600 threshold. The 1099-K didn't change anything about how I run my business. The other 1099 scenario would have meant a legal obligation for me to collect SSNs and file tax forms against numerous Realcent members. Apples and oranges.

I can't even see straight enough to respond to this.

It's not apples and oranges. It's simple record keeping! I think you should have to file the $600 1099s. Just you. only you

It is the government forcing you to comply, and confiscating your money.

I disagree with withholding btw. Do you? I'll bet not.

[Thogey]

As far as the hobby level coin/bullion enthusiast, the only thing that I can think of that might be an issue is if some entity DOES 1099 you... whether PayPal or some other business. Then you will have to show that income on your taxes. However, if you can show corresponding receipts (costs), then you will only have to pay taxes on just profits and not the entire revenue. The reason for the PayPal hoopla was that most individuals don't have the receipts.

My thought is that if you have $20k in revenue through PayPal, whether PM related or not, then you are conducting business activity. They will 1099 you. If it is liquidation of a collection from a hobby, which would assume that no receipts are available, then I would imagine that a tax professional needs to be contacted. If you don't like these facts, then a sale of the collection to or through another party needs to be considered.

I do have sympathy for the individual with no record of purchase, but until there is some law or code written around it, the revenue needs to be reported as profit.

Bull$hit as well.

See above response to nate.
Some of us don't want to be boiled frogs.

[Thogey]

You guys are apples

I'm an orange. That's all I'll write about that.

[Market Harmony]

Thogey. You are fighting a system. What is your proposed solution?