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  1. #1
    ABW Ambassador meadowmufn's Avatar
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    Sending 1099s to Corporations?
    I have an email in to my accountant, but I thought I'd ask here to see if any of you have dealt with this yet.

    I've heard about the new requirement about sending 1099s to any company with which you have total transactions of $600 or more. For many of us, that would include Google Adwords, MSN Adcenter, various domain registrars, and the like. What information do I need from these companies, if any, and where do I send the 1099s?
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
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  2. #2
    ABW Ambassador isellstuff's Avatar
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    You only need to send 1099-MISC to US Citizen's whom you pay more than $600 to do work for you or profit share with you. So I have a business partner with whom I share proceeds from a joint project. I send him a 1099-MISC. I have a contractor who writes content articles, I send her a 1099-MISC.

    I use https://www.efilemyforms.com/ To e-mail a 1099 to the above people and also e-file with the IRS.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  3. #3
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    Quote Originally Posted by meadowmufn View Post
    I have an email in to my accountant, but I thought I'd ask here to see if any of you have dealt with this yet.

    I've heard about the new requirement about sending 1099s to any company with which you have total transactions of $600 or more. For many of us, that would include Google Adwords, MSN Adcenter, various domain registrars, and the like. What information do I need from these companies, if any, and where do I send the 1099s?
    I've never heard of this. With Adwords, MSN Adcenter, domain registrars** (buying domains) those are all expenses. I print out the receipts, then give them to my accountant and let him do his magic.

    **Last year I bought like 300 domains, my printer is mad at me.

  4. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    The rule has always been that 1099 Miscs must be sent to non-employee independent contractors who are individuals or dbas, but NOT to corporations. This would eliminate any need to send them to Google, MSN, Yahoo, GoDaddy, Hostgator, etc.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  5. #5
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    Talk to a tax professional to determine whether any particular payments trigger 1099 reporting requirements.

    I seem to recall receiving a notice last fall from eBay (or maybe it was PayPal) regarding an agreement with the IRS to report aggregate transaction amounts through their system (apparently the IRS believed that a lot of eBay sellers hadn't properly reported income, which seems pretty dumb given the clear financial record left by online transactions).

    I know that several years ago, Amazon sent me a 1099 for their transfers for my Marketplace sales (I sold a bunch of books through their Marketplace that year), separate from the 1099 for Associates Program revenue that same year. Their Marketplace 1099 was for the "net amount" paid to me, which required some adjustments to my tax accounting (I had been tracking gross customer payment amounts to Amazon, and Amazon's fees separately).

    I haven't sent or received any non-employee payments exceeding $600 in the past year, so I haven't checked for any changes to the law or regulations. Again, talk with a competent tax professional regarding your specific situation.
    Last edited by markwelch; January 24th, 2011 at 04:05 PM.

  6. #6
    ABW Ambassador meadowmufn's Avatar
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    My accountant got back to me. She said the requirement to send 1099s to companies you transacted $600+ with is only in effect for payments made in 2012 or after. Yay! So, that gives me another year to figure this all out.
    Last edited by meadowmufn; January 24th, 2011 at 03:58 PM.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
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  7. #7
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by meadowmufn View Post
    ... I've heard about the new requirement about sending 1099s to any company with which you have total transactions of $600 or more. For many of us, that would include Google Adwords, MSN Adcenter, various domain registrars, and the like. What information do I need from these companies, if any, and where do I send the 1099s?
    You have me thoroughly confused with this "requirement about sending 1099s to any company ..."

    It has been my understanding that I receive 1099s FROM companies, i.e., merchants, networks, etc., for whom I have done something to earn $600 or more annually.

    But maybe you're speaking as a merchant, not an affiliate?

    Confused,

    Gary
    Generate more fake news.

  8. #8
    ABW Ambassador meadowmufn's Avatar
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    Quote Originally Posted by writerguy View Post
    You have me thoroughly confused with this "requirement about sending 1099s to any company ..."

    It has been my understanding that I receive 1099s FROM companies, i.e., merchants, networks, etc., for whom I have done something to earn $600 or more annually.

    But maybe you're speaking as a merchant, not an affiliate?

    Confused,

    Gary
    It was in the new healthcare law. You might want to talk to an accountant to see how if affects you. My understanding is (and someone who knows better, please pipe up if this is wrong), if you spend more than $600 (in total, not just in one transaction) with another business over the course of the year, you have to send them a 1099. There may be restrictions, exceptions, etc, so like I said, talk to an accountant.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
    - Silence is golden. Duct Tape is silver.

  9. #9
    Moderator MichaelColey's Avatar
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    Moderator Note: I've moved and renamed this thread.

    This is a part of the new Healthcare Bill.

    Costly changes to 1099 reporting in health care law | AccountingWEB.com

    “And for the first time, 1099s are to be sent to corporations,” Hesse said. “This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.”
    Michael Coley
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  10. #10
    ABW Ambassador meadowmufn's Avatar
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    Thanks for the link, Michael! It says right there it doesn't take effect til 2012. If I'd seen that, it would've saved me from bugging my accountant for the umpteenth time this week. LOL.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
    - Silence is golden. Duct Tape is silver.

  11. #11
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    Thanks for the clarification. Now I understand one of the bullet points I saw during the McLauglin Group (PBS) this weekend, but which confused me then. I think he was listing specific provisions of the health-care law that he thinks are likely to be repealed (apart from the doomed "complete repeal" bill which the House just passed).

    I assume that the purpose is to reduce tax evasion by businesses who aren't reporting income that isn't currently included in 1099s. The impact of the reporting requirement on small businesses will make this a rallying point, so it certainly might be repealed.
    Last edited by markwelch; January 24th, 2011 at 04:34 PM.

  12. #12
    ABW Ambassador writerguy's Avatar
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    I'm trying to imagine myself buying a new laptop for business purposes for, say $700-$800, in 2012 -- then trying to figure out how or where to send a 1099 Misc. to Amazon.com or Best Buy.

    ?????????????

    Gary
    Generate more fake news.

  13. #13
    ABW Ambassador isellstuff's Avatar
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    Wow, that's a pain. I'm trying to estimate of how many I would have to send out and it is certainly more than 10...
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  14. #14
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    Quote Originally Posted by writerguy View Post
    I'm trying to imagine myself buying a new laptop for business purposes for, say $700-$800, in 2012 -- then trying to figure out how or where to send a 1099 Misc. to Amazon.com or Best Buy.

    ?????????????

    Gary
    Whoever you bought it from. I don't like it because it's extra work but when I think about it, really not that much I don't think. My accountant will tell me what to do. Fill out a form, stick it in the mail. Probably just a few. And from reading, it's what Mark posted. Because some businesses under report and this will make it harder to do that and it's supposed to generate billions more in tax revenue.

    We could just legalize all online gambling and tax all businesses, I'm talking about churches. And our money problems would be solved.
    Last edited by Trust; January 24th, 2011 at 04:55 PM.

  15. #15
    Moderator MichaelColey's Avatar
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    I just finished sending out my 1099s for this year. If I had to send them out to corporations and not just individuals, it would have been more than 10x as many of them.

    I wonder if we're supposed to collect W-9s from corporations starting in 2012, too?
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  16. #16
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by writerguy View Post
    I'm trying to imagine myself buying a new laptop for business purposes for, say $700-$800, in 2012 -- then trying to figure out how or where to send a 1099 Misc. to Amazon.com or Best Buy.

    ?????????????

    Gary
    I thought I was confused but what I was reading on this thread, but now that you asked that question... The confusion turned into worry...

    Gary, if you buy the computer in parts like (case, HD, keyboard, display, etc...), and assemble it yourself, maybe you don't have to send one?

  17. #17
    ABW Veteran Mr. Sal's Avatar
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    By the way, If the Mayan are correct about the 2012 prediction... Who would be around to send anything to where?

  18. #18
    ABW Ambassador meadowmufn's Avatar
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    Quote Originally Posted by Mr. Sal View Post
    By the way, If the Mayan are correct about the 2012 prediction... Who would be around to send anything to where?
    Good point, but I think I'll be prepared to send out 1099s... just in case.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
    - Silence is golden. Duct Tape is silver.

  19. #19
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    A bill in the Senate to kill the new 1099 requirement passed 81-17 today. The requirement appears to be universally despised by both sides of the aisle and should have clear sailing in the House.

    Senate Scraps 1099 Requirement in Health Care Law
    Last edited by Phil Kaufman aka AffiliateHound; February 2nd, 2011 at 07:33 PM.
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  20. #20
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    The House passed a different bill to kill the new 1099 requirement in March, and today the Senate passed the identical bill. It will now go to the President who is expected to sign it, returning 1099-misc requirements to what they have been for many years - not required for payments paid to corporations.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  21. #21
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    Quote Originally Posted by AffiliateHound View Post
    The rule has always been that 1099 Miscs must be sent to non-employee independent contractors who are individuals or dbas, but NOT to corporations. This would eliminate any need to send them to Google, MSN, Yahoo, GoDaddy, Hostgator, etc.
    Well stated, and following the lead of a lot of other posters I would absolutely confer with your accountant before anything. They have specific internet marketing focused law professionals to help you with this kind of thing.

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