islandgirl Posted July 16, 2011 Share Posted July 16, 2011 (edited) Make sure your books are correct regarding CC deposits...Just got a letter from my bank regarding updating information and this new requirement regarding the 1099 nightmare that is going to bite us all in the butt!! :rolleyes2http://taxes.about.com/od/businesstaxes/qt/cardreporting.htmFrom Article:Banks and merchant services will report annual gross payments processed by credit or debit cards to the IRS and to merchants. Credit card payments will be reported by the merchant service using Form 1099-K with copies sent to the business and to the IRS.No information report will be required if a merchant's total payment transactions for the year does not exceed $20,000, andthe total number of transactions does not exceed 200.Small businesses will want to review their bookkeeping and accounting practices. Once card payment reporting begins, business owners will need to reconcile the information reports submitted by the banks to their own books. Any discrepancies in reporting will need to be addressed so that accurate tax returns can be filed with the IRS.Just wait till we all have to report all purchases over $600.00 that we made or sold to the IRS.. This is only the beginning of what is going to be an accounting nightmare!!!ETS: Per Link .....Merchants who fail to provide their taxpayer identification number could become subject to backup withholding at a rate of 28% on their payments. To prevent backup withholding, merchants should provide their card payment services provider with the name, address, and EIN for the business. Edited July 16, 2011 by islandgirl Quote Link to comment Share on other sites More sharing options...
WillowBoo Posted July 16, 2011 Share Posted July 16, 2011 well...I'm totally screwed. Haven't even been able to file my 2010 fed return, only an extension from all the paperwork I have to sift through!!Great, just something else to worry about! Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted July 16, 2011 Share Posted July 16, 2011 (edited) I am so glad I dumped my credit card machine 2 years ago. My large wholesale clients pay in increments or complete at the time of order and delivery and they all pay by check.... Retail customers at crafts shows and boutiques pay by cash and check.... I'm still waiting for the ruling that in order to sell at craft shows, boutiques, farmers markets everyone needs a cash register and register tapes.. I see lots of crafters that don't issue receipts or have a cash registers,,, many don't have a clue of what they brought in inventory either. So I'm supposing that will get nailed next. Edited July 16, 2011 by SherriLynn Quote Link to comment Share on other sites More sharing options...
annie123 Posted July 16, 2011 Share Posted July 16, 2011 Between this and the Safe Cosmetic Act 20011 I am getting a headache (big one), I'm starting to think that you need to make a lot and I do mean a lot of money to put up with all that aggravation...lucky for me I don't have to pay any taxes on my private jet. Quote Link to comment Share on other sites More sharing options...
Stella1952 Posted July 16, 2011 Share Posted July 16, 2011 Ugh. One of my clients just started taking credit cards (I wish they hadn't...) and this is going to increase my consumption of headache medicine considerably. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted July 17, 2011 Author Share Posted July 17, 2011 Ugh. One of my clients just started taking credit cards (I wish they hadn't...) and this is going to increase my consumption of headache medicine considerably.We will all need to start drinking for sure!! LOLCheck you merchant account statements. On a statement I received it says as of July 2011......You will be charged a Regulatory Product fee in the amount of $4.95 per month to help address the administrative and other cost associated with processes and procedures related to various governmental regulatory requirements. :tiptoe::tiptoe::tiptoe::tiptoe: Quote Link to comment Share on other sites More sharing options...
Stella1952 Posted July 17, 2011 Share Posted July 17, 2011 Just another excuse to gouge their merchant customers. Da bastids! They're already taking those costs off their income taxes as COGS. Quote Link to comment Share on other sites More sharing options...
EnvyCandles Posted July 17, 2011 Share Posted July 17, 2011 OK, maybe you guys can help me out here... I am not sure why this is such a bad idea... It seems like everyone under the sun has to report stuff to the IRS- wouldn't this just mean that we would have all CC sales reported and have a W/1099/1098 (whatever) for the total amount of CC sales? What is the down side to this (well aside from BIG BROTHER in everything we do)...? I did not receive anything from my merchant provider, but, will be checking... Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted July 17, 2011 Share Posted July 17, 2011 For me. it's not the reporting issue... my concern is the extra fees, more paperwork for us, accountants and the IRS to make errors with and in general the BigBro side of it, someone sticking their nose into my biz... stuff like that just drives me. Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 I don't know why any of this comes as a surprise to anyone. Government is not the solution to the problem. Government IS the problem. Quote Link to comment Share on other sites More sharing options...
doglover Posted July 17, 2011 Share Posted July 17, 2011 Maybe I am missing something here. I already pay taxes on the credit card sales (and other sales) I make--hence it gets reported. So just another form?? Quote Link to comment Share on other sites More sharing options...
annie123 Posted July 17, 2011 Share Posted July 17, 2011 Call me suspicious but this could be the first step to collecting taxes on all internet sales.I got rid of my merchant account 2 years ago and only use Paypal now and I haven't heard anything from them. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted July 17, 2011 Author Share Posted July 17, 2011 (edited) Paypal is included in this little reporting . PayPal is preparing for new IRS reporting requirements, and online sellers should prepare as well! PayPal is modifying its User Agreement to make sure users acknowledge that PayPal will begin reporting payments received into accounts of those users who receive more than $20,000 and more than 200 payments (yes, it is AND - I get that question a lot). PayPal and other payment services and credit card merchant account providers will have to report payments made in 2011 on Form 1099-K to the IRS. http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2010/9/1283997077.htmlIt is a way for the government to make sure ALL sales and money is reported correctly so they can get their cut abd balance their overspent budget and get out of the bailout that they put us into.annie123... I bet your right..They probably will be going after all internet sales and want proof.... They will want their sales tax collected on internet sales. Even tho we are supposed to already be reporting "use" on our tax forms, most don't.Get Ready for all your Sales and purchases of $600.00 to have to be reported on a 1099 ... Craft shows probably will require a register in the future. I can see that being next.FUNDRAISERS is another one I am waiting for them to crack down on.... I know so many companies that don't charge sales tax on their fundraisers, and it is supposed to be collected on fundraisers in some states. Many states have fundraising laws that say you need to collect sales tax EVEN if you are a 501C. Being a Charity does not make you tax exempt for fundraisers in certain states. I do know of a school and a candle company that was audited and had to pay back taxes on a VERY large fundraiser.I agree with Sliver....Government is not the solution to the problem. Government IS the problem. Edited July 17, 2011 by islandgirl Quote Link to comment Share on other sites More sharing options...
jackbenimble Posted July 17, 2011 Share Posted July 17, 2011 Well either we will comply with the new rules oe we won't. If we want to continue to make the things we love to sell to our customers we will just have to suck it up and take it I guess. But this is good info to be thinking about. Thanks for posting this" :-) Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 Well either we will comply with the new rules oe we won't. If we want to continue to make the things we love to sell to our customers we will just have to suck it up and take it I guess. But this is good info to be thinking about. Thanks for posting this" :-) You get the government you deserve. Your kind of irrational thinking is why the country is quickly going under.Third world, anyone? Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted July 17, 2011 Share Posted July 17, 2011 (edited) Chaching, chaching, chaching....I can see my accountant bill going up.You're right Jack.. the hoops we have to jump through to create, produce and sell our passions... I do pay sales tax on fundraisers.... except on those that I have Non profit forms from. But I know many that don't. Craft shows, I can see cash registers there too Islandgirl (TY for posing the blog I found it very interesting)... In my state (MN) we are required to fill out ST19 forms (seller compliance form showing your state tax ID number and that your legal to sell in MN) kept on file by promotors used for insurance purposes and state audits. I've been waiting for Minnesota to start sending forms to each crafter asking for copies of receipts showing sales by show.... Yup.. I can see the trickle effect here. Hmmm.. I had thought of using Paypal.... gosh,, maybe I can stay under 200 ,, and $20,000 and only take cash or check after that HUH?? Me bad, slaps my fingers, did I type that????... My brain was just a whirling...If the 1099K will be in use... the IRS and we/them/us,, should also get copies of that. Edited July 17, 2011 by SherriLynn Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 only take cash or check after that HUH??Fixed it for ya. Quote Link to comment Share on other sites More sharing options...
jackbenimble Posted July 17, 2011 Share Posted July 17, 2011 You're right Jack.. the hoops we have to jump through to create, produce and sell our passions... That is what I was trying to say SilverofWax. I love making my candles and soaps and if we want to continue we may have to do what is asked of us. I don't like it either BTW. Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted July 17, 2011 Share Posted July 17, 2011 Smiles at Sliver... u got it...I hear ya Jack... Gosh.. I'm gonna have to go on a diet soon, so I can jump through all these hoops and keep on sellin'..... Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 That is what I was trying to say SilverofWax. I love making my candles and soaps and if we want to continue we may have to do what is asked of us. I don't like it either BTW. I'm just wondering...........Do you know the consequences of not voting or voting for someone without doing due diligence on that person's record? It doesn't take a rocket scientist to see what's happening to America. When people were screaming "socialist", they weren't kidding. It's very sad, but 100% preventable. When it comes to voting, inactions or wrong actions have consequences. Good grief, when the government runs up trillions of dollars of debt, whose pocket do you think that's coming out of, for Pete's sake? USE YOUR BRAINS, PEOPLE!!!!! Quote Link to comment Share on other sites More sharing options...
islandgirl Posted July 17, 2011 Author Share Posted July 17, 2011 (edited) Ya know.. This also means the government will now have in their system and be able to track every single purchase we make via credit cards. Not digging the thought of that either.***For all those that thanked me for posting this and the links...Your Very Welcome..I know I was not aware of this new Credit Card 1099 law, so I am glad that it helped some of you by posting it here. Edited July 17, 2011 by islandgirl Quote Link to comment Share on other sites More sharing options...
Lorelei Posted July 17, 2011 Share Posted July 17, 2011 Ya know.. This also means the government will now have in their system and be able to track every single purchase we make via credit cards. Not digging the thought of that either.It makes me just cringe...I thank you for making us aware of this... Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 Sorry, but how could you not have been aware of it? It's been all over in print and on the internet. I'm not in the mood to do a search, but I'm quite certain it's been talked about right here on this forum, as well as every other forum known to mankind. It's part of the Health Care Bill. You know...Obamacare. And if you think the government wasn't already tracking your every move, think again. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted July 17, 2011 Author Share Posted July 17, 2011 (edited) Sorry, but how could you not have been aware of it? It's been all over in print and on the internet. I'm not in the mood to do a search, but I'm quite certain it's been talked about right here on this forum, as well as every other forum known to mankind. It's part of the Health Care Bill. You know...Obamacare. And if you think the government wasn't already tracking your every move, think again.I was aware of the 1099's that are going to be required for tracking purchases that were over $600.00, which was talked about on this forum. Are you thinking of that thread?? I never knew there was going to be 1099's required for all credit card purchases which your merchant account needs to file with the IRS. I didn't see any posts or threads regarding Credit Card 1099's on here. But I could have missed it..:rolleyes2 When your in the mood, do a search for me...I am sure there is a lot in the Healthcare packet that we are ALL unaware of. Edited July 17, 2011 by islandgirl Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted July 17, 2011 Share Posted July 17, 2011 I honestly can't think of anything nice to say so I'll keep quiet, other than to ask who on earth you thought was going to do the reporting. Leprechauns?Anyone who thinks their merchant account is their friend is wrong. Way wrong. That pretty much goes for any financial institution. Quote Link to comment Share on other sites More sharing options...
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