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So if I want to buy a nice cappuccino machine for the office to congratulate some hard work, 1099? A few chairs for the office, 1099? License an application f

• miratrix 16y ago
  Remember to get their name and address, as well EIN / SSN so that you can actually fill out the fields in the 1099 form. And even if it's below $600, you _might_ buy from them before the year-end, so you need to record the amount in case the total aggregate amount for the year goes above $600. This requirement is just plainly insane, but at least IRS also agrees that it's insane ( http://www.irs.gov/newsroom/article/0,,id=225270,00.html http://www.irs.gov/newsroom/article/0,,id=225270,00.html )
• dantheman 16y ago
  I feel that this requirement is only there so that the data can be collected for a coming VAT in the US. They can't push such unpopular legislation through at once.
  • Vivtek 16y ago
    That doesn't make sense for me. First, US lawmakers don't really think that far ahead. But more tellingly, this isn't a universal requirement - it just applies to business transactions that can't otherwise be audited. I think it's no more than what it appears to be: a ham-handed way to shore up the traceability of money flow.
    • dantheman 16y ago
      And why does the government need to trace money flow?
      • Vivtek 16y ago
        The better to tax it, my dear. Presumably. I'm not saying I agree with it - I don't. Just that it's a smaller leap of faith in my opinion to believe that's the motivation.