Well this puts in to place all the framework they need to track a value
added tax and/or for the states to track all those transactions you do on
the Internet where you are supposed to voluntarily pay your respective state
sales tax if they have one………. Yes we have change folks……….

 



Brian

 

From: members-boun...@wispa.org [mailto:members-boun...@wispa.org] On Behalf
Of Rick Harnish
Sent: Thursday, April 29, 2010 10:51 AM
To: 'WISPA General List'; memb...@wispa.org
Subject: Re: [WISPA Members] [WISPA] [Fwd: You're going to love this... New
IRS rules]

 

Here is the word from WISPA’s CPA.  I have his permission to relay this
document.  I suggest that each of you consult with your own accountant/CPA
for suggestions on what can be done to prevent this and begin getting the
word out to others in your communities that may be unaware of this language
in the Health Bill.  For those of you that are seeing this email for the
first time, the article is at the bottom of this thread which was originated
on the wireless@wispa.org list.

 

Respectfully,

Rick Harnish

 

From: gregcharl...@krehbielcpa.com [mailto:gregcharl...@krehbielcpa.com] 
Sent: Thursday, April 29, 2010 9:34 AM
To: Rick Harnish
Subject: Re: 

 

Rick,

 

Your information is absolutely correct - this is effective 1/1/2012 and will
be a huge burden collecting all the addresses, id #'s etc to do this - plus
postage.  In WISPA's case, quickbooks will do a good job of organizing the
information and collecting the amounts to report during the year - once the
addresses and id #'s are collected.

 

Attached is a word document out of our research software that describes this
in detail.


                Greg Charlton
 Krehbiel & Associates, LLC
 PO Box 846 
 125 N. 11th
 Mt. Vernon, IL  62864
 Phone 618-244-2666
 Fax 618-244-2372
 E-Mail gregcharl...@krehbielcpa.com

 


CONFIDENTIAL & PRIVILEGED TRANSMISSION 
 
The message included with this e-mail and any attached document(s) contains
information from the accounting firm of KREHBIEL & ASSOCIATES, LLC which is
confidential and/or privileged.  This information is intended to be for the
use of the addressee named on this transmittal sheet.  If you are not the
addressee, note that any disclosure or use of the contents of this e-mail
information is prohibited.  If you have received this e-mail in error,
please notify us by telephone (collect) at (618) 244-2666 immediately. 
IRS Circular 230 Disclaimer:  Any written advice contained in this e-mail is
not intended or written, and cannot be used by any person, for the purpose
of avoiding any penalties that may be imposed on any person under the
provisions of the I.R.C

 

 

----- Original Message ----- 

From: Rick Harnish <mailto:rharn...@wispa.org>  

To: gregcharl...@krehbielcpa.com 

Cc: 'WISPA Board Members List' <mailto:bo...@wispa.org>  

Sent: Thursday, April 29, 2010 7:05 AM

 

Greg,

 

I would like to request a formal opinion concerning 1099 rules included in
the new Health Bill.  I have pasted an article below that has produced quite
a bit of discussion and disagreement.  

 

If companies are required to issue 1099’s to each vendor they purchase more
than $600 in payments.  Is this correct and if so, when does it take affect?
It does seem to me like an enormous burden on all business in the USA.  

 

Thank you,

Rick Harnish

President

WISPA

 

 

 


 

Next:
<http://www.cato-at-liberty.org/2010/04/26/well-worn-ideological-grooves-ii/
> Well-Worn Ideological Grooves II

Previous:  <http://www.cato-at-liberty.org/2010/04/26/hayek-after-35-years/>
Hayek after 35 Years


 
<http://www.cato-at-liberty.org/2010/04/26/costly-irs-mandate-slipped-into-h
ealth-bill/> Costly IRS Mandate Slipped into Health Bill


Posted by  <http://www.cato.org/people/chris-edwards> Chris Edwards

Most people know about the individual mandate in the new health care bill,
but the bill contained another mandate that could be far more costly.

A few wording changes to the tax code’s section 6041 regarding 1099
reporting were slipped into the 2000-page health legislation. The changes
will force millions of businesses to issue hundreds of millions, perhaps
billions, of additional IRS Form 1099s every year. It appears to be a
costly, anti-business nightmare.

Under current law, businesses are required to issue 1099s in a limited set
of situations, such as when paying outside consultants. The health care bill
includes a vast expansion in this information reporting requirement in an
attempt to raise revenue for an increasingly rapacious Congress.

In a recent summary,  <http://ria.thomsonreuters.com/> tax information firm
RIA notes the types of transactions covered by the new 1099 rules:

The 2010 Health Care Act adds “amounts in consideration for property” (Code
Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(1)) and “gross
proceeds” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(2))
to the pre-2010 Health Care Act categories of payments for which an
information return to IRS will be required if the $600 aggregate payment
threshold is met in a tax year for any one payee. Thus, Congress says that
for payments made after 2011, the term “payments” includes gross proceeds
paid in consideration for property or services.

Basically, businesses will have to issue 1099s whenever they do more than
$600 of business with another entity in a year. For the $14 trillion U.S.
economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used
car, it will have to gather information on the seller and mail 1099s to the
seller and the IRS. When a small shop owner pays her rent, she will have to
send a 1099 to the landlord and IRS. Recipients of the vast flood of these
forms will have to match them with existing accounting records. There will
be huge numbers of errors and mismatches, which will probably generate many
costly battles with the IRS.

Tax CPA  <http://www.lemasterdaniels.com/> Chris Hesse of LeMaster Daniels
tells me:

Under the health legislation, the IRS could be receiving billions of more
documents. Under current law, businesses send Forms 1099 for payments of
rent, interest, dividends, and non-employee services when such payments are
to entities other than corporations. Under the new law, businesses will be
required to send a 1099 to other businesses for virtually all purchases. And
for the first time, 1099s are to be sent to corporations. This is a huge new
imposition on American business, costing the private economy much more than
any additional tax that the IRS might collect as a result.

There appears to have been little discussion before this damaging mandate
was slipped into the health bill and rammed through Congress, but a few
business groups did raise concerns. <http://www.acca.org/blog.php?id=448>
Here’s what the Air Conditioner Contractors of America said:

The House bill would extend the Form 1099 filing requirement to ALL vendors
(including corporate) to which they pay more than $600 annually for services
or property. Consider all the payments a small business makes in the course
of business, paying for things such as computers, software, office supplies,
and fuel to services, including janitorial services, coffee services, and
package delivery services.

In order to file all these 1099s, you’ll need to collect the necessary
information from all your service providers. In order to comply with the
law, you would have to get a Taxpayer Information Number or TIN from the
business. If the vendor does not supply you with a TIN, you are obligated to
withhold on your payments.

Private transactions are the core of a market economy, and the source of
America’s growth and prosperity. Now the federal government is imposing a
vast new web of red tape on perhaps billions of these growth-generating
private exchanges.

For what purpose? So the spendthrift Congress can shake a few extra bucks
out of private industry? The business sector is the generator of America’s
high living standards, but most federal legislators just see it as a kitty
to be raided or a cow to be milked dry.

I’m stunned that there wasn’t a broader debate before such a costly mandate
was enacted. If it goes into effect, it will waste vast quantities of human
effort in filling out forms, reworking computer systems, collecting and
organizing data, and fighting the IRS. The struggling American economy can’t
afford anymore suffocating tax regulations. This mandate is a giant
deadweight loss. It should be repealed.

 

No virus found in this incoming message.
Checked by AVG - www.avg.com
Version: 8.5.437 / Virus Database: 271.1.1/2837 - Release Date: 04/26/10
18:27:00



--------------------------------------------------------------------------------
WISPA Wants You! Join today!
http://signup.wispa.org/
--------------------------------------------------------------------------------
 
WISPA Wireless List: wireless@wispa.org

Subscribe/Unsubscribe:
http://lists.wispa.org/mailman/listinfo/wireless

Archives: http://lists.wispa.org/pipermail/wireless/

Reply via email to