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 Replies: 12 / Views: 2,390 |
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Rest in Peace
United States
5375 Posts |
As far as I know (could be wrong), the provision of the healthcare bill that mandated businesses issue 1099 forms to those they purchase more than $600 in goods from or something like that has been repealed with bipartisan (and Obama's) support.
But there's also a provision requiring credit card processors (ie paypal, google checkout) to report income; is there any progress on that being repealed? It's for sellers who have over $20,000 flowing in per year, but that's a gross amount and doesn't include fees, overhead, costs, etc. So this basically means something to the effect of sellers who make as little as $1500 after fees having to account for every expense, keep accurate records, and possibly even spend money on an accountant when I doubt many of them have experience with that kind of onerous record keeping (or have the time to do it). Seems like it would crush start up businesses and cost the government money in the long run, since those businesses which grow will obviously be able to afford accountants/record keeping and will pay more $$$. I'm hoping this provision gets repealed as well, and it seems likely, but yeah is there any progress on this? I can't find any specific recent articles.
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Valued Member
United States
310 Posts |
The paypal thing it a 2 fold requirement. $20,000 AND 200 transactions before they have to report.
If you do $20,000 with only 100 transactions, or may $15,000 with 500 transactions, they won't report.
It has not been repealed as far as I know, and this is starting for the 2011 tax year.
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Rest in Peace
 United States
5375 Posts |
Yep. That is what I heard, and its caused a lot of confusion for people who think their $800 toy selling operation will get reported.
Is there any progress towards a repeal? I hear parts of this are being fought.
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Pillar of the Community
United States
1534 Posts |
I really hope this isn't going to go into effect since I might be on the receiving end of it. I wonder if it would only be for sellers who meet that criteria and use a credit card as funds for their Paypal account, since I use a bank account.
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Pillar of the Community
United States
2335 Posts |
IMO the only people being saddled with an undue paperwork burden is the credit card processors. They are the ones that have to file the extra paperwork. Under current tax law anyone selling merchandise as a business or individual is required to keep accurate records & file income/expenses on their tax returns.
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Rest in Peace
United States
5375 Posts |
Yeah but few people who sell small time really do that now...its way too much work for most people.
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Pillar of the Community
United States
2335 Posts |
I don't have a huge problem with people that are making little to no profit not keeping accurate records. However, most people selling $20k in merchandise are making enough profit to pay tax. I understand there are people selling some high dollar items that have low margins who would not be making a significant profit, but they are the exception.
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Pillar of the Community
United States
3077 Posts |
my dream is repeal the 16th
i know its just a dream but I hate the IRS
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Valued Member
United States
310 Posts |
I think you have very little chance this is repealed since it's in effect now. If it was gonna happen, I think it would have happened when they extended the bush tax cuts.
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Rest in Peace
United States
5375 Posts |
It seems that they're arguing over it or something...there was widespread criticism over the other part, but I haven't seen much on this. Nothing is getting done since they can't agree on how to compensate for the bill, etc.
Edited by coinguybrian
02/15/2011 01:52 am
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New Member
United States
3 Posts |
RE: 1099 repeal
As far as I read in news, the Senate approved a bill to repeal of the new 1099 reporting requirement and March 3 the House approved a similar version of the repeal bill. However, the two bills are not identical and would require an act of congress to change one version to match the other or a new "compromised" version made up of agreed parts of either bill. I am interested to see the effect on values of coins and metal. I think prices have been held down by the 1099 requirement, so a repeal of the law should let prices RISE. Any thoughts?!?!?!?
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New Member
United States
3 Posts |
UPDATE, MARCH 29, 2011: The U.S. Senate is set to vote today on three proposals for repealing a widely loathed tax reporting requirement included in healthcare reform, Senate Majority Leader Harry Reid (D-Nev). told reporters this afternoon. -- The Hill Healthcare Blog.
There are different versions of the repeal for reporting requirements, but both reportedly have enough support to pass. I think this has a big impact on coin and precious metal values.
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Rest in Peace
United States
5375 Posts |
From what I saw, it was only the main "$600 reporting requirement", not the credit card processor (ie paypal) 1099-K requirement. Unless one of them includes the 1099-K issue...
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Replies: 12 / Views: 2,390 |
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Posted 02/07/2011 09:51 am
