IRS + New 1099 Rules = Horribly Bad Idea

The IRS just keeps getting more and more efficient and making things easier for taxpayers… NOT!

Anyone renting a house to someone else is now responsible to send 1099’s to anyone who does work for them on the home.  For example:

  • Have a plumbing repair?  …prepare to send out a 1099 to the plumber
  • Hiring a property management company so you don’t have the hassle of a rental?  …prepare to send out a 1099 to the management company
  • Having the carpets cleaned for a new tenant moving in?  …prepare to send out a 1099 to the carpet cleaner

 

Just wait – it gets better…

Anyone who has a business will now be required to send out a 1099 to anyone they pay money to in the course of their business…  What does that mean? 

  • Going to Office Depot for supplies?  …prepare to send out a 1099
  • Hiring someone to do a roof repair?  …prepare to send out a 1099
  • Buying materials from a supplier?  …prepare to send out a 1099

 

Now look at it from the other side…  Anyone who writes a check to you in the course of your business will be required to send YOU a 1099. 

  • Cleaning someone’s carpets?  …prepare to receive a 1099 from every business you deal with
  • Selling supplies or materials to someone’s business?  …prepare to receive a 1099 from every business you sell to

 

Bottom line is, you will now be required to track every dollar you spend and send a form to almost every vendor you deal with and receive a 1099 in return from almost every business you do work for.  Lots more red tape and paperwork for no additional benefit… Good job IRS!

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