1099 Insanity Update

There is now word from IRS that they will NOT require 1099'ing on any credit card transactions. Imagine that. So what that does is force us to set up TWO vendor accounts for each vendor instead of one. Since the CC transactions can be ignored, you'd still 1099 for everything else. I don't see how that helps much.

And I wonder what the credit card reporting system turns into then. For some reason, the hair stands up on the back of my neck now. Something's afoot, and it can't be good. Kiss a big chunk of your freedom goodbye.

For anyone who thinks this is as bad an idea as I do, lookkee here: IRS Seeks Comments on New Form 1099 Reporting Requirements

In Notice 2010-51, the IRS invites public comment on how to most effectively carry out a law change that will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099. The new reporting requirements take effect for payments made after December 31, 2010. These comments will help the IRS issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting.

Under a proposed regulation, many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they are already reported by banks and other payment processors. The IRS seeks comments on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent such duplicate reporting.

To submit comments:

Via e-mail to Notice.Comments@irscounsel.treas.gov. Include "Notice 2010-51" in the subject line.