1099-K Reporting for all Credit Card Merchants for 2011.. Here we go Folks..

[Bernadette]

I do know that PayPal, Propay, Authorize.net, and eBay sent notices out to everyone last year that this was going to be required on the >$20,000 - 200 transactions thing. I think it was toward the end of last year.:tiptoe:

[SliverOfWax]

And something people don't seem to realize: Paypal is a merchant account. It can be used anywhere. It's not just for online purchases.

[WillowBoo]

All of my cc sales are in my total sales every year anyways, so I guess unless it creates more stupid paperwork, it really won't matter.

[doglover]

All of my cc sales are in my total sales every year anyways, so I guess unless it creates more stupid paperwork, it really won't matter.

That's what I'm saying....

[SliverOfWax]

You'll be screaming bloody murder when your costs for supplies start going up. This isn't just about you and your little world. When the businesses you buy from have to hire people to do the increased bullcrap paperwork, who do you think is going to pay?

Here's an article that's about a year old:

http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm

Edited July 18, 2011 by SliverOfWax

[WillowBoo]

Honestly, all I need to worry about is my little world........

[doglover]

You'll be screaming bloody murder when your costs for supplies start going up. This isn't just about you and your little world. When the businesses you buy from have to hire people to do the increased bullcrap paperwork, who do you think is going to pay?

What do you mean "start"? They have been going up....and I see no end in sight!! And that is the sad truth--we are all in trouble! Oh, and MY world is NOT little!

Edited July 18, 2011 by doglover
misspelling

[Stella1952]

When people were screaming "socialist", they weren't kidding....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!!!!!

The problem is OLIGARCHY not socialism. Which president was it that got us into a war without raising taxes? In fact giving tax breaks to the upper crust? The vast majority of the spending and foolish economic policies began far before the last presidential election. In case you don't remember, the current POTUS inherited a meltdown... I wish a lot of people would use their brains 'cause I am so sick to death of hearing the right wing talking points parroted over and over and over again in a fact-free vacuum. Dittoheads, all.

Sure, the government wants as much money as they can get - what government in the world doesn't?!!! The problem is the middle men - the greedheads who have injected themselves between us and the destination of our money. They are like a bucket line at a fire. Instead of just turning on a hose, we pass buckets which get sloshed until there's only 3 cups in each one by the time it gets to the fire. The dirtbags are all wetting their beaks. They aren't even hiding it any more. The charges inside of charges are simply to placate BIG BUSINESS. Turn your ire on that for a change because that is the real source of power and evil that is taking down this country - not the government. Pay attention to the people you NEVER get to vote for - the CEOs and the upper managements who skim off the cream of every dollar you spend!

I agree with Sliver....Government is not the solution to the problem. Government IS the problem.

I don't care how large the type nor how blue - you are talking against your own interests. Sorry as it has become, thanks to no election finance reform, among other things, the government is the only thing that stands between us and those who would own us completely if they were allowed to do so - the greedheads. Idiots are screaming for the EPA to be disbanded and for other consumer protections to be eliminated. That's high idiocy!! Deregulating business has NOT worked! Business will never police itself! Neither will the (not) free markets! The banksters were amazed that we didn't come with pitchforks and torches and burn their McMansions down, so they partied on and now are merrily going about fleecing even MORE from us!!

You can continue looking in the direction that the collaborators are pointing and blaming those whom they say to blame, OR you COULD do some INDEPENDENT research of your own to help you realize that you've been giving voice to a movement that exists solely to provide a distraction and to divide the people.

Back to the topic...

Find the loopholes and use them. Or better yet - grow a pair and refuse to comply. If enough people simply REFUSE TO COMPLY that should muck things up sufficiently... Remember civil disobedience? People CAN disagree with laws and other oppressive actions by utilizing the concept of active social disobedience. As Nancy Reagan said, just say no. Better yet, don't just say it, do it!

[SliverOfWax]

Honestly, all I need to worry about is my little world........

Believe me, I understand. I've lived a very good capitalist life. I earned what I needed, bought what I wanted, saved when I felt like it, and never worried about the government sticking its nose into my business. I never sucked the entitlement tit, I never depended on the government for my free food card. It's been a very good, albeit a very selfish life. I've enjoyed it to the fullest.

I have no children, no grandchildren, nobody to leave this country to, so I'm not sure why I care. It's just sad to me to see America slowly, insidiously fall to where each generation loses more and more freedom. As of now, it's not even remotely recognizable.

Those of you who see nothing wrong with Big Government, go for it. It's your legacy. Makes no difference to me.

Edited to add: As expected, Stella doesn't quite get the fact that CEOs are the people with money giving jobs to the little people. Funny how that works. No surprise there. There's a whole lotta stuff Stella doesn't get.

Edited July 18, 2011 by SliverOfWax

[Stella1952]

As expected, Stella doesn't quite get the fact that CEOs are the people with money giving jobs to the little people. Funny how that works. No surprise there. There's a whole lotta stuff Stella doesn't get.

There's a whole lot more that has passed you by, SoW. CEOs take a HUGE amount of money that COULD be given to the workers... but Nooooo.... th greedheads want it all!! How in the heck can you even remotely justify the average salaries (let alone the outrageous ones, along with bonuses and privileges) that CEOs command? You don't seem to understand that YOUR capitalist life is NOT the one that sucks the life out of the middle class (hopefully)...

It's been a very good, albeit a very selfish life. I've enjoyed it to the fullest.

Jeeze, what if you had lived it a little less selfishly?

[SliverOfWax]

There's a whole lot more that has passed you by, SoW. CEOs take a HUGE amount of money that COULD be given to the workers... but Nooooo.... th greedheads want it all!! How in the heck can you even remotely justify the average salaries (let alone the outrageous ones, along with bonuses and privileges) that CEOs command? You don't seem to understand that YOUR capitalist life is NOT the one that sucks the life out of the middle class (hopefully)...

Jeeze, what if you had lived it a little less selfishly?

Epic FAIL.

You can always spot the people with no personal drive, skill, or pride felt when rewarded for a job well done. Every time.

[Stella1952]

You can always spot the people with no personal drive, skill, or pride felt when rewarded for a job well done. Every time.

Yeah, but obviously YOU don't possess that skill.

[annie123]

You get the government you deserve.

Your kind of irrational thinking is why the country is quickly going under.

Third world, anyone?

You are so right...but let's look at the bright side when the Safe Cosmetic Act od 2011 becomes law we will all be out of business and then the IRS won't collect anything.

Edited July 18, 2011 by annie123

[jackbenimble]

If I ever make $20,000 a year I'll be cheering! So until then it doesn't bother me. (oh and I know someone is going to say something. It's cool whatever.)

[EnvyCandles]

If I ever make $20,000 a year I'll be cheering! So until then it doesn't bother me. (oh and I know someone is going to say something. It's cool whatever.)

Smartest comment in this entire thread!

[SliverOfWax]

Smartest comment in this entire thread!

Seriously? You don't get it either? You two honestly don't know that when costs go up for the people you're buying from they pass that cost on to you? Is it that hard for you to understand? And you're playing with fire?

Damn!

The smartest comment is one that hasn't yet been said in this thread, so I'll go ahead and say it:

You Can't Fix Stupid!

[coconut]

The bill requiring people who purchased over $600.00 of goods to issue a 1099 to the seller, has been repealed. http://www.farmdocdaily.illinois.edu/2011/04/congress_repeals_recent_legisl.html

This was tucked into the Health Care Bill.

The Bill regarding reporting credit card sales over 20000.00 to be reported is still in force and was actually put in place before this administration. Personally, if I have sales over 20,000.00 per year, I would be happy to pay the taxes! That's a lot of candles!

Per Paypal: How will I know if IRC Section 6050W impacts me? PayPal will track the payment volume of your account(s) and if your payment volume exceeds both thresholds by receiving over $20,000 in gross payment volume AND over 200 payments in a calendar year. If your account(s) exceed both thresholds, PayPal will send Form 1099-K electronically or by mail for the 2011 tax year in early 2012.

Here is an interesting read: http://www.foxbusiness.com/markets/2011/01/21/new-ugly-effect-tax-evasion/

[Bernadette]

http://www.lookingfit.com/blogs/editor/2011/04/repealed-1099-600-reporting-provision.aspx:tiptoe:

[Stella1952]

The bill requiring people who purchased over $600.00 of goods to issue a 1099 to the seller, has been repealed.

A lot of folks went ape over that one, but I had no doubt it would be repealed because it was too cumbersome for all concerned.

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.

I suspect that this will go more smoothly than it seems. Good bookkeeping practices would automatically separate credit card transactions from other types, and categorize the associated fees, chargebacks, etc. separately, so all one has to do is compare the figures from the 1099-K with those on the books (should be the same) and go from there.

The real areas of concern are outlined in the following quote from the OPs link:

The new law requires banks to report gross receipts. However, merchants often have chargebacks, issue refunds, or have debit card transactions where the customer receives cash back. Under the proposed regulations, banks and other payment transaction services will be reporting only gross monthly and annual payments. Fees, chargebacks, refunds and other items will not be netted against these gross amounts for IRS reporting purposes. Accordingly, businesses should have thorough accounting procedures to keep track of these items separately. In other words, if you are accustomed to recording only a net deposit from a merchant account, it would be wise to separate those net amounts into gross receipts and the associated fees and refunds. That way your internal financial reports can be more easily reconciled to this new Form 1099-K...

...Another concern is that credit card transactions could become subject to backup withholding or garnishment if a business becomes delinquent on their tax payments. Under the proposed regulations, the IRS made it clear that backup withholding would occur on gross card payments. This could leave a business in severe financial difficulties. Business owners who are struggling with tax debts should work with their tax professional to develop a repayment strategy that prevents any withholding on their card payments.

This is another way for the IRS to tighten its noose on unreported or underreported income, which does cause a legitimate privacy concern; however, as people often quip, "if you aren't doing anything wrong, you have nothing to worry about." If you are already reporting your income and expenses honestly and making your tax payments in a timely manner, it theoretically should not be a concern that the gross receipts from cards are reported to the IRS. Edited July 19, 2011 by Stella1952

[bwc]

Well, Pelousy did say that they had to sign the bill so we'd know what was in it, didn't she? And NOW we know!

[Stella1952]

Well, Pelousy did say that they had to sign the bill so we'd know what was in it, didn't she?

I think you are confusing the 1099-K Reporting for all Credit Card Merchants for 2011, which was passed under George Da Shrub, with the other 1099 idiocy (where you'd have to 1099 any vendor with whom you did more than $600 worth of business) tacked onto the health care reform bill to which you referred that was just repealed...

[JAVAEBOY]

The problem is OLIGARCHY not socialism. Which president was it that got us into a war without raising taxes? In fact giving tax breaks to the upper crust? The vast majority of the spending and foolish economic policies began far before the last presidential election. In case you don't remember, the current POTUS inherited a meltdown... I wish a lot of people would use their brains 'cause I am so sick to death of hearing the right wing talking points parroted over and over and over again in a fact-free vacuum. Dittoheads, all.

Stella, Quick question to you and everyone else on the left. If Hillary Clinton would have run for President, would you have voted for her? If your answer is yes, then she too voted to put us into those 2 wars, given the same information about WMD's that was given to the president by the weapons inspectors that were in Iraq. Everyone on the left seems to forget, that 3 years prior to that report, Iraq had 30,000 tons of WMD's. Does anyone really think they suddenly just disappeared? Also the left was in control of the other 2 branches of government for 6 of those 8 years, so let's put a little (well maybe a little more than a little) blame on them. Now Obama did say that he voted NO on the wars which is pretty amazing since he wasn't even a Senator yet, and most likely he would have voted "Present" like he did some 90% of the time he was in there to vote. I also believe that May 20, 2010 has passed us by, and that was the date that Obama promised we would be out of Afganistan. (He said 16 months after he became president). I also believe Guantanamo Bay is still open, contrary to what Obama said he would do. We are in another war that wasn't even voted on by Congress... How is that Hopey - Changey thing working for you?

[SliverOfWax]

I think you are confusing the 1099-K Reporting for all Credit Card Merchants for 2011, which was passed under George Da Shrub, with the other 1099 idiocy (where you'd have to 1099 any vendor with whom you did more than $600 worth of business) tacked onto the health care reform bill to which you referred that was just repealed...

As usual, duh!

How can it possibly be that there are still morons out there who don't realize both the house and the senate were (D) then? How is it possible?

I'm sorry, too, that it appears you didn't make it much past 3rd grade. I'm pretty sure you would have learned how to spell BUSH by then.

Edited July 19, 2011 by SliverOfWax

[SliverOfWax]

Stella, Quick question to you and everyone else on the left. If Hillary Clinton would have run for President, would you have voted for her? If your answer is yes, then she too voted to put us into those 2 wars, given the same information about WMD's that was given to the president by the weapons inspectors that were in Iraq. Everyone on the left seems to forget, that 3 years prior to that report, Iraq had 30,000 tons of WMD's. Does anyone really think they suddenly just disappeared? Also the left was in control of the other 2 branches of government for 6 of those 8 years, so let's put a little (well maybe a little more than a little) blame on them. Now Obama did say that he voted NO on the wars which is pretty amazing since he wasn't even a Senator yet, and most likely he would have voted "Present" like he did some 90% of the time he was in there to vote. I also believe that May 20, 2010 has passed us by, and that was the date that Obama promised we would be out of Afganistan. (He said 16 months after he became president). I also believe Guantanamo Bay is still open, contrary to what Obama said he would do. We are in another war that wasn't even voted on by Congress... How is that Hopey - Changey thing working for you?

Quoting this post because it's a good one and needs to be read again by the numbnuts who don't have a clue.

Thanks, javeboy. It's indeed nice to know there's some intelligent life amongst us.

[Stella1952]

We were discussing the new reporting for IRS and bookkeeping. If you people want to rave about politics, how's about doing it in the Political forum so others won't have to drown in this sh*t?

Sorry I got sucked by your barbed remarks into a rave. I should know better. No one can speack freely around you.

Javaboy, your remarks have how much to do with reporting requirements for IRS purposes?

Sliver, why is is that any time you don't like what someone says, you call them stupid? Why don't the mods here enforce the TOS which would stop little tyrants like you from continually, in thread after thread, insulting others who disagree with your beliefs and opinions?

Edited July 19, 2011 by Stella1952