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!