I know this is boring to some, but you have to realize that this
impacts the way you file your taxes (write offs/deductions) next year
for your nail biz. So if you know what is going to happen, you can
simply change your buying habits to save you alot of grief and bull
crap when you do your 2011 taxes,
As I stated before, this new tax requirement concerns our PURCHASES
of products, services goods for your business. If you purchase more
than $600.00 per company, you have to file a 1099 form and give it to
this company. Example, you purchase all year long 600.00 worth of
office supplies at Staples, your receipts add up to 600.00, you have
to contact staples, get their Federal ID number, and GIVE THEM a 1099 form.
How you can avoid this new tax requirement is either pay by
credit/debit card.....you DO NOT have to file a 1099 form if you pay
by credit/debit card.
If you pay by cash/check you have to file the 1099 form.
If you don't want to file a 1099 form and your receipts total up to
600.00 or more, YOU CAN'T write it off as a deduction.
Anyway, below is a post I received about the Senate trying to block
this. It failed. A couple of Senators even tried to make the filing
of 25 or more employees and even up the 600.00 to 5,000.00 dollars.
It didn't work. This is all part of the Obama Health Care package.
As I hear more I will let you know. This all just happened and I
can't find anything in the news as of right now. I don't know if
this will be repealed or not. If the Fall elections change in the
House and Senate, don't know if this will get changed.
I just wanted you to realize that starting in January 2011 you may
want to take advantage of anything you pay with cash/check and expect
to spend more thatn $600.00 at one location, you may want to change
to credit/debit card to save you the headache of filing 1099
forms. diana from indiana
By Alexander Bolton - 09/14/10 12:47 PM ET
The Senate on Tuesday defeated an effort to strip a controversial
tax-reporting provision from the sweeping healthcare law Congress
passed earlier this year.
In a 46-52 vote, lawmakers killed an amendment sponsored by Sen.
Mike Johanns (R-Neb.) that would have saved businesses and nonprofit
groups from having to report an array of small and medium-sized
purchases to the Internal Revenue Service.
A handful of Democrats voted for the Johanns proposal, including
Sens. Evan Bayh (Ind.), Michael Bennet (Colo.), Blanche Lincoln
(Ark.), Ben Nelson (Neb.), Mark Pryor (Ark.), Mark Warner (Va.), and
Jim Webb (Va.).
The vote puts the Senate on track to pass small-business assistance
legislation this week or early next week.
The U.S. Chamber of Commerce and other business groups had lobbied
furiously in favor of the Johanns amendment. Business groups argue
the new requirements impose a heavy cost on small businesses and will
harm the economy.
The provision, which is estimated to raise $17 billion over 10
years to pay for a new prevention and public healthcare fund,
requires businesses and other groups to file 1099 tax forms to report
purchases from a single supplier that total more than $600 in a year.
PLEASE NOTE: That's a 1099 for each and every time a $600 purchase
or service is transacted. It's going to add to the cost of whatever
service or product the purchaser does.
An alternative to Johann's amendment sponsored by Sen. Bill Nelson
(D-Fla.) also fell short of passage. Nelson's proposal would have
increased the reporting threshold to $5,000 and eliminated the
requirement for businesses with fewer than 25 employees.
Nelson's amendment failed by a vote of 56 to 42, four votes short of
the 60 needed to cut off debate and move to a final vote.
Republicans expressed concerns over the Nelson alternative because it
would have been paid for by repealing a tax break for large
oil-and-gas producers.
Senate Republicans said they were not surprised the Johanns amendment
did not attract more votes, citing staunch opposition from President Obama.
"The White House does not want to set the precedent of rewriting
the healthcare bill," said a GOP aide. "They don't want to admit they
made any mistakes in the bill before the election."
Democratic leaders scheduled the vote on the Johanns amendment to
secure the support of Sen. George Voinovich (R-Ohio) to advance the
small-business bill. Voinovich had demanded consideration of the
small-business reporting provision before agreeing to a final vote on
the broader bill.
The legislation would provide $12 billion in tax cuts to small
businesses and set up a $30 billion Small Business Lending Fund. It
would allow businesses to write off up to $500,000 in capital
investments and 50 percent of the cost of new equipment. It would
also increase to $10,000 the tax deduction for small business start-ups.
Julian Pecquet contributed to this story.
This story was posted at 11:59 a.m. and updated at 12:47 p.m.
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