Home News Business - Are you ready for the new tax laws?

Let the federal government to make things more complicated than they have to. If you think that the maintenance of records for home based business is a nightmare now, wait until 2011 hits and new tax laws in force for PayPal, if they pass the course. You will be flooded with more paperwork than ever imaginable. This article explains. 


In short, this is how this disaster. From 2011, all revenue that comes through PayPal will have a 1099 that is credited if you win more than $ 20,000 and has more than 200 transactions. PayPal is required to submit a 1099 on his behalf to the IRS. Now, on the surface, this does not seem a big deal. The problems, however, are many.
For starters, if you have been doing their taxes as they should have done from the beginning and are not making any decent money (actually, anything over $ 600) and should have been sending a 1099 to the feds that they let know what you've been earning and / or pay contractors. So now, the feds are going to receive a 1099 from people who have been sending them a 1099 Plus PayPal. This results in duplication of paperwork.
It is not only double the paperwork. How is the IRS going to know what is a duplicate and what is actually another 1099? How are we going to let them know this so do not end up thinking that we are only paying part of our taxes? Oh, but nightmares do not end there.
Let's say you spend over $ 600 with any one provider through PayPal, regardless of whether it is business related or not. For example, I can play a game online video that could easily spend more than $ 600 a year in gambling chips. I will now have to report that by the fact that payments go through PayPal and will report to the IRS. Here is where it gets messy. Now we're not just talking about business expenses.We're talking about any amount of money passing through PayPal in excess of $ 600 a year for a seller. Have fun with it.
I pity the poor that has payments of thousands of people in more than $ 600 a year (I think the poor guy who owns the Warrior Forum and the section of the OSM), which will be flooded with thousands of 1099 of all persons who spent more than $ 600 per year. You will need a team of accountants just to sort through this nightmare.
Yes, let the federal government to completely screw things beyond belief. Anyway, that's what we're in for next year if this new tax law goes through PayPal. 

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