kcjenkins

My link

I have several that started out with the woman as my client, where I just added the husband to her return, so she's listed first. IRS does not care. Just don't like you swapping back and forth every year.

Here is the original post that this thread was in reference to: Posted 06 April 2010 - 04:24 PM The passage of the Healthcare reform bill included some of the most drastic changes to 1099 information reporting in over a decade. The bill included revenue raising provisions meant to seek greater compliance of the tax code via 1099 information reporting. General provisions included: Ø The elimination of the corporate exemption from 1099-MISC reporting. (Public Law 111-148) Ø The requirement to report payments for property (goods, materials, merchandise, supplies, etc.). (Public Law 111-148) Ø A six-fold increase in penalties from $250,000 to 1.5 million. (H.R.4213, H.R.4849) Ø A doubling of penalties per record from $50 to $100. (H.R.4213, H.R.4849) Beginning for payments made after December 31, 2011, companies will be required to furnish and file form 1099-MISC for payments made to all for-profit companies regardless of corporate status. In addition all payments for goods, materials, merchandise, supplies, and other property will need to be reported as well. Early indications reveal that these changes will likely cause the 1099 reporting volume to increase significantly for most companies as well as the associated B-Notices. [You think?????] While the law applies to payments made after December 31, 2011 companies need to make broad changes to: 1) W-9 procedures to include all vendors. 2) Solicit W-9's for corporate vendors. 3) Prepare for larger 1099 year-end printing, mailing, and filing. 4) Make the appropriate budgetary and system updates to accommodate these changes.

Newfoundland + Basset Hound = Newfound Asset Hound, a dog for financial advisors AND TAX PREPARERS!

That can already be done in the Website forum. It's the third option, below Chat and Efile.

It's not an option, JH was wrong.

It's impossible to calculate from just AGI alone. Depends on what made up that AGI. For example, if you do MFJ, no children, and put the $149,790 on line 21, you get a tax of $25,148. Put the whole $149,790 on a W-2 and you get tax of $25,148 LESS 800 on line 62, for a net of $24,931 . Put it on Sch D as a sale of a zero basis longterm asset, and you get a tax of $9,479. Put 100K on a W-2 and 49,700 on sch D and you get a tax of $20,658. Etc. You did not even make clear whether that amount was from line 46 or line 60. Any credits? Anything on Line 36? ????

Sorry if my post was not clear. I meant that the 'earnings' would not be penalized if it was in there 5 years, just taxed. Contributions are not ever taxed.

Yep, ALL of those will be required, unless something is changed.

The Internal Revenue Service has updated its Web site to provide information to small employers regarding the new tax credit for providing health coverage. The new Web pages include a graphic to help employers quickly determine if they qualify for the credit; scenarios that explain how much certain businesses and exempt organizations would benefit from the credit; tax tips on taking the credit, and a set of questions and answers. The IRS is encouraging small employers to carefully consider the tax credit.

Sure, the IRS Pub.

I will certainly be praying for you.

And my total favorite, especially this time of year:

EXACTLY. That is why this really needs to be changed before it ever comes into play. The amateur tax-code writers in DC these days don't understand half of what they are writing, IMNSHO. This is a crazy, impossible burden to put on every business, just to make the IRS matching more complete. Plus, we know that the IRS will not be able to handle such a flood of new filings, either. I foresee the entire IRS 1099 system crashing if they actually keep this law as currently passed. Not to mention marches on DC that might well turn violent this time. Just reading it makes me want to hit someone.

I'd guess ALT means Alternative.

That gave me a good laugh. Thanks, I needed it.

IR-2010-43, April 7, 2010 WASHINGTON - The Internal Revenue Service today released a new form that will help employers claim the special payroll tax exemption that applies to many newly-hired workers during 2010, created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18. New Form W-11 Link to Form, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, is now posted on IRS.gov, along with answers to frequently-asked questions about the payroll tax exemption and the related new hire retention credit. Link to Pub The new law requires that employers get a statement from each eligible new hire, certifying under penalties of perjury, that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for anyone during the 60-day period. Employers can use Form W-11 to meet this requirement. Most eligible employers then use Form 941, Employer's Quarterly Federal Tax Return, to claim the payroll tax exemption for eligible new hires. This form, revised for use beginning with the second calendar quarter of 2010, is currently posted as a draft <http://www.irs.gov/pub/irs-dft/f941--dft.pdf> form on IRS.gov and will be released next month as a final along with the form's instructions. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records. The HIRE Act created two new tax benefits designed to encourage employers to hire and retain new workers. As a result, employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from the employer's share of social security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee's future Social Security benefits, and employers would still need to withhold the employee's 6.2-percent share of Social Security taxes, as well as income taxes. In addition, for each unemployed worker retained for at least a year, businesses may claim a new hire retention credit of up to $1,000 per worker when they file their 2011 income tax returns. These two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause. Family members and other relatives do not qualify for either of these tax incentives. Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly-hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible. Visit IRS.gov for details.

If he is only 37, then clearly he's taken an early distribution. If he did not have it in there for 5 years, it's subject to different treatment, if it was in there for 5 years, only the earnings are taxed, not his contribution.

If they are buying calves to raise to slaughter weight then sell, then yes, that cost is treated as inventory cost, and shown on line 2 of the F when they are sold. Since that is usually in the same year, it may not be a timing issue. If they buy in the fall and sell in the spring, for example, it will only be a significant factor in the first and last years, since after the first year, they will be writing off one years worth of purchases every year.

There is a KB document on how to do it. Don't have time to pull it, but if you go there you will find it. It CAN be efiled .

It's 'earned income' because you earned the right to receive it by working, even tho it's only paid after you are laid off. That is why it's reported to you on a W-2.

Yep, we're going to have to get people started on sending out W-9s to basically EVERYBODY. And let them know that the penalty is $100 for EACH form not sent. Hey, maybe this is the Congress's way of trying to help the post office stay in business?!? There is no logical justification for putting this huge burden on every business, just to make them unpaid employees of the IRS, but hey, they passed it. It's now the law, unless we get enough of them fired in Nov to get it changed before it goes into effect. The biggest burden, from a practical point of view, will be on the small business, where they do not have lots of employees to handle such profitless paperwork. Think about that "all payments for goods, materials, merchandise, supplies, and other property will need to be reported as well." That means you're going to have to keep up with how much you paid Office Max, Staples, your printer, Fed-Ex, UPS, etc. Not just the total amount for office supplies, but how much to each company. I guess, although I am not certain, that we will not have to send one to the Post Office. Are payments to quasi-government entities exempt? It says 'for-profit' businesses, and while the PO does not make a profit, it was, a few years back, changed from a pure government agency into what was supposed to be a profit-making entity. Maybe we better send them one too, to be safe?