2012: all companies must issue 1099 forms for > $600 goods or services

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Of course, also billions in income tax revenue for the IRS.

But, isn't it also double-taxation in some cases? A business already pays income tax on its income from sales, then they have to report the 1099 income (from any of those sales over $600) as well?

Posted at 12:45 pm May 6, 2010 EDT

That's not the only way they are going to pay for Obamacare! Remember all this in Nov.!

Posted at 12:45 pm May 6, 2010 EDT

Mass confusion and hysteria ......I can see it now lol.

Posted at 12:46 pm May 6, 2010 EDT

I don't even get that about Paypal issuing 1099s - Paypal does not pay you anything. Your customers do. I would think it would be the actual person who paid you who should be issuing the 1099. (Just ranting, I don't know the specific rules about this)

Posted at 12:47 pm May 6, 2010 EDT

BlushEnvy says

Marking, off to find more info-

Posted at 12:48 pm May 6, 2010 EDT

NellaLlama says

OK I saw the other post.

I am wondering ... services, that includes mail & shipping. So you'd have to issue a 1099 to the US Post Office, UPS etc.

Can you imagine how many businesses spend over $600 in postage? And sending 1099's to the US PO?

Gee I guess the gov't can hire a lot of people to process all this, and companies will have to hire people to do it... thus improving employment.

I saw something else, if the vendor doesn't provide their tax info you can withhold payment... does that mean, you can "buy" stuff from shady dealers, not get the tax info, and thus never have to pay for the purchase?

hmm individuals ... yard sales ... if you buy $200 from the wife, and $200 from the husband, and $250 from the kid, you have not bought over $600 from any individual.

Posted at 12:48 pm May 6, 2010 EDT


Posted at 12:49 pm May 6, 2010 EDT

NellaLlama says

It is not just in "one purchase", it is total for the fiscal year from that person/vendor/service provider.

Paypal ... would not be based on the money that went THRU Paypal but on the total fees that you paid Paypal.

Tho I imagine Paypal would be reporting on what went THRU it ...

Posted at 12:51 pm May 6, 2010 EDT

NellaLlama says

Fuzzy, they don't pay taxes over again based on the 1099, this is being used to double-check that they paid the tax originally.

1099 for otherwise un-reported income = pay taxes.

1099 for things where tax already paid - tracking only.

Posted at 12:54 pm May 6, 2010 EDT

atomique47 says

This doesn't make any sense.. I had five 1099's and a W2 this year and it was horrible! I can not even imagine what this would do.

Posted at 12:58 pm May 6, 2010 EDT

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