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Author Topic: Remember that New US Tax Reporting Rule of $600 or More to Corporations?  (Read 5433 times)

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« on: February 03, 2011, 11:33 »
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It went something like requiring people who had payments of $600 or more to corporations to report it or something like that. Anyway, it looks to have been struck down. Though, why it appears as an amendment to the S. 223: FAA Air Transportation Modernization and Safety Improvement Act is beyond me.

http://www.govtrack.us/congress/amendment.xpd?session=112&amdt=s9


Also, it looks like Canada is or is about to strike down the new "metered Internet bill", which would have done away with unlimited Internet plans.

http://www.theglobeandmail.com/news/politics/crtc-will-rescind-unlimited-use-internet-decision-or-ottawa-will-overturn-it/article1892522/

Thus concludes your happy news for the day.
« Last Edit: February 03, 2011, 12:56 by Whiz »


« Reply #1 on: February 03, 2011, 12:22 »
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Yeah, it looks like the senate voted to repeal the 1099 thing.

« Reply #2 on: February 03, 2011, 12:36 »
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You might want to title your thread to indicate that it applies only to US residents.

« Reply #3 on: February 03, 2011, 12:44 »
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Thanks for the happy news, Whiz. Glad to see that the US Senate has voted to repeal this. But I wonder if it means that the 1099 is really gone, or does the House have to repeal it also?

Anybody know?

« Reply #4 on: February 03, 2011, 12:57 »
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Thanks for the happy news, Whiz. Glad to see that the US Senate has voted to repeal this. But I wonder if it means that the 1099 is really gone, or does the House have to repeal it also?

Anybody know?

The House will also have to vote on it, but it is expected to easily pass. And the President is for the repeal as well, so I see no difficulties down the road. I say this because both parties seem to be in favor of repeal.

« Reply #5 on: February 03, 2011, 12:58 »
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You might want to title your thread to indicate that it applies only to US residents.

I always forget to do that.

helix7

« Reply #6 on: February 03, 2011, 13:24 »
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Good news. I had a feeling this thing was destined to go down in flames.

Thanks for the update.

« Reply #7 on: February 03, 2011, 13:30 »
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So it is $600 this years? Getty sold one image for me thru Flickr Collection and they sent me 1099, weird.

« Reply #8 on: February 03, 2011, 15:04 »
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I don't understand what this means? can someone tell me straight up, I haven't done my taxes yet. Do I only need to report earnings from sites that paid me over $600, or do I need to report all sites?

sc

« Reply #9 on: February 03, 2011, 16:12 »
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You need to report all earnings.
This has nothing to do with what you made.

It was about you having to send 1099's to any company you spent over $600 with.
So if you bought a $1000 lens from Adorama you would need to send them a 1099.
And if you bought a Computer from Apple you would need to send them a 1099.

It was going to be a nightmare - thank goodness they are dumping this provision.

(edit) this wasn't to take effect this year anyways)

lisafx

« Reply #10 on: February 03, 2011, 18:36 »
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Hooray!!  Very good news for us here in the US.  :D

« Reply #11 on: February 03, 2011, 18:48 »
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You need to report all earnings.
This has nothing to do with what you made.

It was about you having to send 1099's to any company you spent over $600 with.
So if you bought a $1000 lens from Adorama you would need to send them a 1099.
And if you bought a Computer from Apple you would need to send them a 1099.

It was going to be a nightmare - thank goodness they are dumping this provision.

(edit) this wasn't to take effect this year anyways)


Well, you would have had to file a 1099 if you had bought that lens with cash or check. Apparently, "electronic transactions" like credit and debit cards were exempt from the 1099 filing.

RacePhoto

« Reply #12 on: February 03, 2011, 23:11 »
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You need to report all earnings.
This has nothing to do with what you made.

It was about you having to send 1099's to any company you spent over $600 with.
So if you bought a $1000 lens from Adorama you would need to send them a 1099.
And if you bought a Computer from Apple you would need to send them a 1099.

It was going to be a nightmare - thank goodness they are dumping this provision.

(edit) this wasn't to take effect this year anyways)


Well, you would have had to file a 1099 if you had bought that lens with cash or check. Apparently, "electronic transactions" like credit and debit cards were exempt from the 1099 filing.

Which makes me ask who pays cash anymore for things like this? Oh I just mailed $1000 cash to B&H for a lens and camera bag. (not really but you get the idea) Or who mails checks for payments anymore, same type of purchase. Sure some people do, but we all have debit cards direct from checking or savings, or charge cards which we can transfer funds electronically to pay from our bank account, no interest. Who needs to make cash transactions?

And may I concur, it was a stupid law to start with!

This one is still around:

What payments must be reported?
A business must file Form 8300 to report cash paid to it if the cash payment is:
      Over $10,000,
      Received as:
         1.            One lump sum of over $10,000,
         2.            Two or more related payments that total in excess of $10,000, or
         3.            Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.
      Received in the course of trade or business,
      Received from the same buyer (or agent), and
      Received in a single transaction or in two or more related transactions.

And this one, just for those who are amused

Report gambling winnings on Form W-2G if:
   1.      The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine,
   2.      The winnings (reduced by the wager) are $1,500 or more from a keno game,
   3.      The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament,
   4.      The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
         1.            $600 or more, and
         2.            At least 300 times the amount of the wager, or
   5.      The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).

So you see a slot machine and notice the top payout line is $1,199
Or a payout on a Keno ticket is $1499

Reduction in paperwork for casinos. Now you know why. :D

I'm still pissed off that some stupid club mailed me (and the IRS) a 1099 because they paid me exactly $600 last year. I said, please pay me $599 and send me a patch or sell me a club T-shirt and send me less, but don't pay me $600! The lady said, Oh no problem. January last year I got the 1099 in the mail. Yeah, well start figuring taxes, and that $600 became $450 in a blink.(maybe worse) and at $100 a day, I worked a day and a half for free because they couldn't just pay me $99 a day? Stupid!

« Reply #13 on: February 05, 2011, 14:32 »
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Best news I've heard all week!   ;D

RacePhoto

« Reply #14 on: February 06, 2011, 00:07 »
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Best news I've heard all week!   ;D

1099 from FT came yesterday. Right on time, unlike some other people I've worked for.

« Reply #15 on: May 25, 2011, 12:25 »
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It went something like requiring people who had payments of $600 or more to corporations to report it or something like that. Anyway, it looks to have been struck down. Though, why it appears as an amendment to the S. 223: FAA Air Transportation Modernization and Safety Improvement Act is beyond me.

http://www.govtrack.us/congress/amendment.xpd?session=112&amdt=s9


Got a letter from my senator yesterday (an actual letter):
"I am pleased to report that, with my strong support, legislation repealing the expanded 1099 requirements ... , HR 4, was signed into law on April 14, 2011"

lagereek

« Reply #16 on: May 25, 2011, 12:33 »
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I cant understand this!  although Im Swedish, every time this happens, I sell lots of RM stuff in the US, last week I sold 4 shots to a Steel corporation, worldrights and all that for a total of 3,5K  then Im told they have to deduct the tax there and then according to this treaty with Sweden, thats fair enough.

However, every time this happens I have a HELL of a time explaining to my own tax-people that the tax is already paid!!  acting as if there is no treaty at all, followed by dozens of questions.

Anyone else experiencing this problem?


« Reply #17 on: May 25, 2011, 16:32 »
0
It went something like requiring people who had payments of $600 or more to corporations to report it or something like that. Anyway, it looks to have been struck down. Though, why it appears as an amendment to the S. 223: FAA Air Transportation Modernization and Safety Improvement Act is beyond me.

http://www.govtrack.us/congress/amendment.xpd?session=112&amdt=s9


Got a letter from my senator yesterday (an actual letter):
"I am pleased to report that, with my strong support, legislation repealing the expanded 1099 requirements ... , HR 4, was signed into law on April 14, 2011"


Yay!

lisafx

« Reply #18 on: May 25, 2011, 18:00 »
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Thanks for the update Sean. Great news! 

And congrats on having a good senator.  Despite writing to mine repeatedly on this issue, neither of them wrote to let me know it was resolved.

« Reply #19 on: May 25, 2011, 18:22 »
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Whiz already posted that here on the forums on April 17th:
http://www.microstockgroup.com/general-photography-discussion/what-happened-to-the-200-yealry-paypal-transactions-thing/

Official link:
http://www.govtrack.us/congress/bill.xpd?bill=h112-4

The whole thing got a bit mangled up in the threads...


 

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