Credit Card companies pushing for mandatory 1099s when you pay by check

[KurtNYC]

Talked to my tax consultant the other day and she says that the credit card companies are now pushing legislation that would require small business to either pay their vendors by credit card all the time OR issue 1099s for EVERY vendor they pay by check.

Why? Because they want 3% of every transaction and changing the playing field in this way will greatly benefit their revenues. They successfully got most states to accept credit cards for payment of taxes (but the taxpayer has to kick in the 3% on top of whatever tax they owe). Now they are moving on to this.

It will make it hard for smaller vendors because the expense of the bookkeeping for each vendor you add will go up. Or the vendor will have to accept credit card payment and lose 4% or so on every payment.

Outrageous of course but it surely won't end there now that "one man One vote" democracy has been killed by the SC.

[rucky]

1. Big Business LOVES regulation!

[KurtNYC]

5. to the tune of Barry Maniolow's "I write the Songs"

We write the laws that make the whole world pay
We write the laws that change dem-mock-rah-say
We write the laws that make small businesses cry
We write the laws, We write the laws

Oh our laws will make you dance
We'll make you pay at every chance,
And we own the Supreme Court so we can't lose.
Then Democracy falls apart,
Well, that’s a real fine place to start.
It’s from me it’s for you,
Money from you, it’s for me,
It’s a world wide monopoly.

(Chorus)

[rucky]

6. !!!

:rofl:

Somewhere Barry Manilow's career is rolling in its grave.

[xchrom]

2. it's a one of thos parasitic 'rents' that are all over banking

and financial institutions these days.

these institutions don't add anything of real value to the world -- they just suck our blood{money}.

[madrchsod]

3. i wondered what the "big friend of small business" push was about

credit card companies love that extra percentages.

[dkf]

4. This is also a provision in the health care bill that is expected to generate tax revenue

Now it seems it was a backdoor payoff to the credit card companies. Shameful.

There is an amount attached to the HCR bill but $600 within a year isn't much i imagine. Bringing that down to any amount is greedy.

[Phlunk]

7. This is actually a part of the health care reform bill

Section 6041 of the Internal Revenue Code was amended by Section 9006. The changes to Section 9006 require businesses to report all purchases of goods and services annually to the IRS. This change effects all payments made after December 31, 2011.

It has nothing to do with the credit card companies. You will have to report whether you pay by credit card, check or cash.

[MilesColtrane]

8. How is this different from the itemized figures I already report on Schedule C as expenses?

[Phlunk]

9. as I understand it

And I openly admit I am not an expert on it all yet. We are just finding out more details.

Currently you claim all of your expenses but you are not required to itemize each of them to the IRS. Now you will be required to report who your vendors were and how much you paid each. This is bad for small businesses as well as big businesses. Just another level of government red tape.

[MilesColtrane]

10. Thanks.

Yes, that would make for a longer annual session with my CPA.

I'm sure she'll adjust her fees accordingly.

[formercia]

11. Let's see if the rethugs push it in Congress.

It will probably be some Trojan Horse amendment on a Bill.

I think a lot of States would like the idea of 1099 forms,in order to track out of State purchases for Sales Tax reasons.

[elehhhhna]

12. you must 1099 any vendor from whom you got 600./yr. in goods/services.

google it but that's the bottom line