Secret Site Map
Tuesday, April 28, 2015

Home News PCO Bookkeeper's Tax Tips: The 1099 Reporting Requirement

PCO Bookkeeper's Tax Tips: The 1099 Reporting Requirement

Business

In the company's most recent e-newsletter PCO Bookkepers commented on the The 1099 Reporting Requirement and what it means to pest control businesses.

| July 16, 2010

Editor's note: PCO Bookkeepers is an accounting and business advisory firm for pest control companies under the leadership of Dan Gordon, a professional with more than 20 years of experience in accounting and managing high growth pest control companies. In the company's most recent e-newsletter PCO Bookkepers commented on the The 1099 Reporting Requirement and what it means to pest control businesses.

If you can't kill small business with a bad economy let's kill them with unworkable
paperwork requirements! Come on Congress are you kidding?

In an effort to collect taxes on an estimated 300 billion dollars a year in tax under payment, and in the infinite wisdom of the president and his congress, Section 9006 of the health care bill mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

Under the new rules, if a PCO (or any other small business) buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A PCO that buys chemicals from a distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases. The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations. But the cost of that paper trail could swamp the small companies that must comply with the rules. A company that currently issues ten 1099s per year could easily see that number pushed to more than 200 filings per year.

The IRS will have broad leeway to interpret the rules -- and it's already showing signs that it will look for ways to minimize the paperwork flood. For example, anything purchased on a credit card will not have to be reported as credit card companies will have their own reporting requirements. Hmmmmm... Sounds like a windfall for the credit card companies. In an effort to mitigate the reporting, small businesses will need to comply with, they may just start making all their purchases by credit card!! I wonder if congress realized in their infinite wisdom that they’ve created a windfall for big business while making it more difficult to operate as a small business!! Stay tuned...

Visit www.pcobookkeepers.com to learn more about PCO Bookkeepers.

 

Top news

Man Burned Trying to Kill Bed Bugs Inside Rental Car

Police say a Long Island man set his rental car ablaze while trying to kill bed bugs inside the vehicle.

Arrow Exterminating's Kennedy Retiring After 55 Years

Joseph Kennedy was hired by Bernard Stegman in August 1960.

Million-Dollar Club Virtual Event Coming Next Month

PCT is hosting the upcoming Million-Dollar Club Virtual Conference. Sponsored by Arrow Exterminators and scheduled for May 20, the event will focus on business development/growth initiatives specifically for pest management companies in the $750,000 to $1.25 million range.

PCT’s Moreland Named UPFDA Malcolm Stack Integrity Award Winner

The award was established in 2005 to honor those individuals within pest control who demonstrate a commitment to the industry and carry themselves with a high degree of professionalism and integrity.

FMC Corporation Completes Acquisition of Cheminova A/S

FMC completed the acquisition of Cheminova for an aggregate purchase price of approximately $1.8 billion, including assumption of debt.

x