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This will be an unmitigated disaster. Office Depot will get 50 million or so 1099's. How do you deal with that many accounting discrepancies? How do you matc

by jcnnghm 16y ago

This will be an unmitigated disaster. Office Depot will get 50 million or so 1099's. How do you deal with that many accounting discrepancies? How do you match that many transactions to all those forms. What about under and over-reporting? This is a Democrat clusterfuck if there ever was one.

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Retric 16y ago
This does not apply to transaction made with a credit card so I don't think Office Depot is going to notice.
- walkon 16y ago
  You're saying there are no customers of Office Depot that make a total of $600 in purchases in a given year with means of payment other than a credit card (e.g. cash, purchase order, or check)? Seems quite unlikely.
  - Retric 16y ago
    Sure there is some, but it's impact is going to be far less than a 1% tax increase on them. Especially when most small business start using CC to avoid the hassle and or simply ignore the issue. Edit: Thanks for the down vote, but as a practical matter the IRS is going to use this as an audit trail. So a company needs to report revenue > the submitted 1099's. While they will get some 1099's their reported gross income is going to be dominated by people who don't need to send 1099's so it's going to have minimal impact. Note: There is zero new tax implications, it’s simply a reporting issue so being sent 1099’s DOES NOT IMPACT the taxes they pay. The people receiving 1099's that are going to suffer are those who try and hide income. Companies are going to need to report revenue > 1099's or the IRS can easily find issue based on that discrepancy. On the other hand Apple is going to need to send a lot of 1099's out to developers.
dsmithn 16y ago
If a company purchases anything over $600, they still only have to submit one 1099.
- jcnnghm 16y ago
  I would guess that almost all companies in the United States spend over $600/year with Office Depot.
InclinedPlane 16y ago
More likely: most businesses will completely ignore this rule. It will either go away before it comes into force or it will be so impractical to police that it will be useless.
- phr 16y ago
  The trouble with rules that remain on the books despite not usually being enforced is that they create opportunities for selective enforcement when they decide to crack down on you for other reasons, such as your political views.
  - InclinedPlane 16y ago
    Yup, they create potential for abuse of power. They also erode trust in legislating bodies and the law in general. See also: http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/1594032556 http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/...

by jcnnghm 16y ago

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Retric 16y ago

This does not apply to transaction made with a credit card so I don't think Office Depot is going to notice.

walkon 16y ago
You're saying there are no customers of Office Depot that make a total of $600 in purchases in a given year with means of payment other than a credit card (e.g. cash, purchase order, or check)? Seems quite unlikely.
- Retric 16y ago
  Sure there is some, but it's impact is going to be far less than a 1% tax increase on them. Especially when most small business start using CC to avoid the hassle and or simply ignore the issue. Edit: Thanks for the down vote, but as a practical matter the IRS is going to use this as an audit trail. So a company needs to report revenue > the submitted 1099's. While they will get some 1099's their reported gross income is going to be dominated by people who don't need to send 1099's so it's going to have minimal impact. Note: There is zero new tax implications, it’s simply a reporting issue so being sent 1099’s DOES NOT IMPACT the taxes they pay. The people receiving 1099's that are going to suffer are those who try and hide income. Companies are going to need to report revenue > 1099's or the IRS can easily find issue based on that discrepancy. On the other hand Apple is going to need to send a lot of 1099's out to developers.

dsmithn 16y ago

If a company purchases anything over $600, they still only have to submit one 1099.

jcnnghm 16y ago
I would guess that almost all companies in the United States spend over $600/year with Office Depot.

InclinedPlane 16y ago

More likely: most businesses will completely ignore this rule. It will either go away before it comes into force or it will be so impractical to police that it will be useless.

phr 16y ago
The trouble with rules that remain on the books despite not usually being enforced is that they create opportunities for selective enforcement when they decide to crack down on you for other reasons, such as your political views.
- InclinedPlane 16y ago
  Yup, they create potential for abuse of power. They also erode trust in legislating bodies and the law in general. See also: http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/1594032556 http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/...