m*t
2 楼
谁说去年IRS不计较的？
e*e
3 楼
呵呵，其实去年报税有没有问题现在还不知道呢
可能很多人还以为已经过去了。
【在 m******t 的大作中提到】
: 谁说去年IRS不计较的？
可能很多人还以为已经过去了。
【在 m******t 的大作中提到】
: 谁说去年IRS不计较的？
h*g
4 楼
http://www.accountingtoday.com/news/New-IRS-1099K-Requirements-
New 1099-K Requirements Can’t Be Ignored
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Reprints
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March 16, 2012
By Roger Russell, Senior Editor, Accounting Today
This is the first year that the IRS requires payments made with a credit or
debit card to be reported by merchants who processed more than $20,000 and
200 transactions.
Like what you see? Click here to sign up for Accounting Today's daily
newsletter to get the latest news and behind the scenes commentary you won't
find anywhere else.
The program, initiated by the Housing and Economic Recovery Act of 2008,
aims to generate $10 billion in revenue over 10 years, although estimates
have varied widely. The goal is to assist the IRS in matching income from
sales to income reported on tax returns. The law requires backup withholding
, in the case of merchants who do not provide a valid Taxpayer
Identification Number and name that match IRS records.
There was initial consternation in the potential taxpayer burden caused by
the fact that gross transactions are being reported while most small
businesses just report net sales on their tax returns. To partly address the
problem, the IRS instructs taxpayers to “enter -0- on line 1(a)” of
Schedule C.
Some have interpreted this as a “kick the can down the road” measure, but
that’s not the case, according to Steven Aldrich, chief executive of
Outright.com, the online accounting software.
“There’s been a lot of chatter on message boards and tax prep blogs saying
, ‘The IRS gave us another year not to have to report our online sales or
merchant payment sales,’” he said. “But that’s not the case.”
“Form 1099-K is still being sent to both the taxpayers and the IRS,” he
noted. “The instructions are pretty clear: anyone who has a merchant
account will get a 1099-K. For 2011, the IRS has deferred the requirement to
report these amounts, so they tell you to enter zero on line 1a. But they
also say to report all gross receipts on line 1b, including any income
reported on Form 1099-K.”
“Don’t ignore the requirement,” advised Aldrich. “The rumor that you don
’t need to report the income this year is simply not true. It still needs
to be reported as part of your gross income. Rebates, refunds, cash backs,
and other adjustments can be entered on line 2.”
The IRS was making a nod toward people trying to figure out how much time
they should spend only on getting the Form 1099-K number perfect, Aldrich
suggested. “It lessens the stress levels because there’s an implicit
understanding that the small business owners would have to reconcile their
internal records with the tax form. By not making it explicit, the IRS tried
to lessen those burdens on small business owners, but since it is income it
still needs to show up on the Schedule C in the way you think it should
best be represented.”
The challenge for small businesses comes when they take electronic payments
as revenue in, but give cash or non-electronic value back to the consumer;
for example, cash-back payments on a credit or debit card or refunds.
“This needs to be tracked locally, with the adjustments made on line 2,”
Aldrich said. “The result is that even though you’re not required to
report anything on line 1a, the IRS expects you to report all receipts.
There’s now a level of visibility available to the IRS that wasn’t there
before.”
Aldrich recommends that Form 1099-K be tailored to resemble Form W-2 in the
way it organizes and presents information. “Gross sales as reported on the
Form 1099-K doesn’t have transparency on the form itself,” he said. “The
small business owner doesn’t know how the figure was generated, and can’t
verify that the number matches what was received during the year. Going
forward, it would simplify matters for the small business if the form shows
all the components of gross receipts.”
4 Comments
This might work for simple retail merchandise and services where the amount
charged matches the price of the item/service sold, but I am not sure how to
apply this to my 'money services business' that does check cashing, western
union money transfers, ATM, and other small money transfer transactions....
- ATM debits for cash, if they withdraw a few hundred dollars our fee is a $
1.75 - Western Union money transfers - they send a few hundred dollars to
family somewhere and the fee is $10 of which our commission is about 1/3rd
and customers often pay with a debit card. - Payday loans - cannot be paid
with credit but are often paid with a debit card. On a $300 loan, our fee
was $45. - Billpay - customer pays $50 to a utility bill and pays with a
debit card. $49 is transferred the next day to the utility company and we
keep the $1 fee. In all these cases except maybe the loans, the money is
never ours and it belongs to someone else and is transferred to that entity
the next day. Our revenue is only the service fees. And even for loans, it
was my understanding that repayment of principle is not revenue.
So imagine how scared I am now that the IRS has a 1099K saying that I
received $370,000 but my actual revenue is only $70,000! How is THAT
supposed to work out when the Schedule C makes you put that 1099K amount
directly into my gross revenues in box 1a? There is NO worksheet to separate
income from tips, sales taxes, or other portions of the transaction.
And what other problems will this cause for business taxes and insurance
costs that are based on 'revenues'.
Posted by: rediron | April 14, 2012 5:46 PM
Report this Comment
I agree totally with Wyatt. In my 40+ years in the accounting and tax
representation profession, I have experienced similar experiences with
federal and state auditors lack of business understanding and perspective.
It usually takes dealing with a more experienced supervisor or appeals
officer to properly resolve the issues. This results in needless cost to the
client as well as considerable frustration and loss of revenue to us when
we write-off time. With the Form 1099K reporting it will only get worse. It
looks to me like a perfect storm is brewing in document matching. The IRS
has already acknowledged (at least unofficially at seminars) that they
expect duplication of income reporting between Forms 1099-MISC and Forms
1099-K. Add Quickbooks in the hands of millions of self-preparers that don't
know a debit from a credit and it's a recipe for disaster.
Posted by: ibcountn | March 22, 2012 12:20 PM
Report this Comment
Unfortunately, that while there are many competent auditors, the bad one
still exist and are not retrained by their managers, of dismissed.
One has to wonder how some of the manager got their promotion.
And in fairness, I will point out that I have run into too many incompetents
on the other side. Only in this case, the taxpayer usually loses.
Posted by: t**[email protected] | March 17, 2012 10:04 PM
Report this Comment
IRS auditors have different levels of expertise. An audit of a restaurant is
an example where the credit card sale will include sales tax of as much as
8 or 10 percent and tips of another 10 plus percent. Sales tax collected and
tips (by nature)are not generally reported as income, and as a result, the
total receipts reported on the credit card sale may be less than the total
income recorded on the tax return. In addition the proprietor will have to
create a cash fund of several thousand dollars to reimburse the wait staff
for their tips on check out at end of each day. I had one very stuborn IRS
auditor who recommended a substantial increase in taxable income in this
type of situation. After about three years and four proposed reports, I got
him to issue a final report which went to appeals with a no change result.
The IRS appeals officer was knowledgeable and understood what I had tried to
explalin to the field auditor a dozen times. The real loser was the
taxpayer and over a hundred hours wasted trying to expain to the auditor
that a Quick Books program could develop a legimate accounting system (if
designed by an accountant or a knowledgable person). Not sure that this is
of any value but I wasted a lot of billing time in the process with an
appropriate result for the taxpayer.
Posted by: w******[email protected] | March 16, 2012 1:00 PM
Report this Comment
New 1099-K Requirements Can’t Be Ignored
Reprints
inShare
March 16, 2012
By Roger Russell, Senior Editor, Accounting Today
This is the first year that the IRS requires payments made with a credit or
debit card to be reported by merchants who processed more than $20,000 and
200 transactions.
Like what you see? Click here to sign up for Accounting Today's daily
newsletter to get the latest news and behind the scenes commentary you won't
find anywhere else.
The program, initiated by the Housing and Economic Recovery Act of 2008,
aims to generate $10 billion in revenue over 10 years, although estimates
have varied widely. The goal is to assist the IRS in matching income from
sales to income reported on tax returns. The law requires backup withholding
, in the case of merchants who do not provide a valid Taxpayer
Identification Number and name that match IRS records.
There was initial consternation in the potential taxpayer burden caused by
the fact that gross transactions are being reported while most small
businesses just report net sales on their tax returns. To partly address the
problem, the IRS instructs taxpayers to “enter -0- on line 1(a)” of
Schedule C.
Some have interpreted this as a “kick the can down the road” measure, but
that’s not the case, according to Steven Aldrich, chief executive of
Outright.com, the online accounting software.
“There’s been a lot of chatter on message boards and tax prep blogs saying
, ‘The IRS gave us another year not to have to report our online sales or
merchant payment sales,’” he said. “But that’s not the case.”
“Form 1099-K is still being sent to both the taxpayers and the IRS,” he
noted. “The instructions are pretty clear: anyone who has a merchant
account will get a 1099-K. For 2011, the IRS has deferred the requirement to
report these amounts, so they tell you to enter zero on line 1a. But they
also say to report all gross receipts on line 1b, including any income
reported on Form 1099-K.”
“Don’t ignore the requirement,” advised Aldrich. “The rumor that you don
’t need to report the income this year is simply not true. It still needs
to be reported as part of your gross income. Rebates, refunds, cash backs,
and other adjustments can be entered on line 2.”
The IRS was making a nod toward people trying to figure out how much time
they should spend only on getting the Form 1099-K number perfect, Aldrich
suggested. “It lessens the stress levels because there’s an implicit
understanding that the small business owners would have to reconcile their
internal records with the tax form. By not making it explicit, the IRS tried
to lessen those burdens on small business owners, but since it is income it
still needs to show up on the Schedule C in the way you think it should
best be represented.”
The challenge for small businesses comes when they take electronic payments
as revenue in, but give cash or non-electronic value back to the consumer;
for example, cash-back payments on a credit or debit card or refunds.
“This needs to be tracked locally, with the adjustments made on line 2,”
Aldrich said. “The result is that even though you’re not required to
report anything on line 1a, the IRS expects you to report all receipts.
There’s now a level of visibility available to the IRS that wasn’t there
before.”
Aldrich recommends that Form 1099-K be tailored to resemble Form W-2 in the
way it organizes and presents information. “Gross sales as reported on the
Form 1099-K doesn’t have transparency on the form itself,” he said. “The
small business owner doesn’t know how the figure was generated, and can’t
verify that the number matches what was received during the year. Going
forward, it would simplify matters for the small business if the form shows
all the components of gross receipts.”
4 Comments
This might work for simple retail merchandise and services where the amount
charged matches the price of the item/service sold, but I am not sure how to
apply this to my 'money services business' that does check cashing, western
union money transfers, ATM, and other small money transfer transactions....
- ATM debits for cash, if they withdraw a few hundred dollars our fee is a $
1.75 - Western Union money transfers - they send a few hundred dollars to
family somewhere and the fee is $10 of which our commission is about 1/3rd
and customers often pay with a debit card. - Payday loans - cannot be paid
with credit but are often paid with a debit card. On a $300 loan, our fee
was $45. - Billpay - customer pays $50 to a utility bill and pays with a
debit card. $49 is transferred the next day to the utility company and we
keep the $1 fee. In all these cases except maybe the loans, the money is
never ours and it belongs to someone else and is transferred to that entity
the next day. Our revenue is only the service fees. And even for loans, it
was my understanding that repayment of principle is not revenue.
So imagine how scared I am now that the IRS has a 1099K saying that I
received $370,000 but my actual revenue is only $70,000! How is THAT
supposed to work out when the Schedule C makes you put that 1099K amount
directly into my gross revenues in box 1a? There is NO worksheet to separate
income from tips, sales taxes, or other portions of the transaction.
And what other problems will this cause for business taxes and insurance
costs that are based on 'revenues'.
Posted by: rediron | April 14, 2012 5:46 PM
Report this Comment
I agree totally with Wyatt. In my 40+ years in the accounting and tax
representation profession, I have experienced similar experiences with
federal and state auditors lack of business understanding and perspective.
It usually takes dealing with a more experienced supervisor or appeals
officer to properly resolve the issues. This results in needless cost to the
client as well as considerable frustration and loss of revenue to us when
we write-off time. With the Form 1099K reporting it will only get worse. It
looks to me like a perfect storm is brewing in document matching. The IRS
has already acknowledged (at least unofficially at seminars) that they
expect duplication of income reporting between Forms 1099-MISC and Forms
1099-K. Add Quickbooks in the hands of millions of self-preparers that don't
know a debit from a credit and it's a recipe for disaster.
Posted by: ibcountn | March 22, 2012 12:20 PM
Report this Comment
Unfortunately, that while there are many competent auditors, the bad one
still exist and are not retrained by their managers, of dismissed.
One has to wonder how some of the manager got their promotion.
And in fairness, I will point out that I have run into too many incompetents
on the other side. Only in this case, the taxpayer usually loses.
Posted by: t**[email protected] | March 17, 2012 10:04 PM
Report this Comment
IRS auditors have different levels of expertise. An audit of a restaurant is
an example where the credit card sale will include sales tax of as much as
8 or 10 percent and tips of another 10 plus percent. Sales tax collected and
tips (by nature)are not generally reported as income, and as a result, the
total receipts reported on the credit card sale may be less than the total
income recorded on the tax return. In addition the proprietor will have to
create a cash fund of several thousand dollars to reimburse the wait staff
for their tips on check out at end of each day. I had one very stuborn IRS
auditor who recommended a substantial increase in taxable income in this
type of situation. After about three years and four proposed reports, I got
him to issue a final report which went to appeals with a no change result.
The IRS appeals officer was knowledgeable and understood what I had tried to
explalin to the field auditor a dozen times. The real loser was the
taxpayer and over a hundred hours wasted trying to expain to the auditor
that a Quick Books program could develop a legimate accounting system (if
designed by an accountant or a knowledgable person). Not sure that this is
of any value but I wasted a lot of billing time in the process with an
appropriate result for the taxpayer.
Posted by: w******[email protected] | March 16, 2012 1:00 PM
Report this Comment
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