'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalties
I'll try to paraphrase much of this since most of the reporting is heavily political ...
ai
Remembering back to 2010, the Affordable Care Act originally included mandates that all US businesses must issue 1099-misc reports of payments made to other businesses. This was of particular concern to independent contractor dancers, because the new mandate would heavily penalize strip clubs which failed to generate 1099-misc reports of dancer 'earnings' to the IRS. It was also of concern to small businesses in general, since the required tracking of payments and the required tax compliance filings would be time consuming and expensive. At any rate, enough complaints were raised that the ACA's 1099 mandate was repealed by the US congress in 2011.
Fast forward to today. Breitbart has combed through the details of the TPP / TAA and has discovered that a provision would 'resurrect' the small business 1099 mandate. Additionally, the IRS penaties upon small businesses which fail to generate 1099's would be tripled.
(snip)“It’s pretty outrageous what is called for in this bill that Congress is going to vote on Tuesday – it literally doubles and triples the taxes on small businesses,” explained Ellis.
Ellis spent hours researching this legislation and explained to Breitbart News how it could impact small business taxes if Congress passes the TAA during its vote on Tuesday.
“Small businesses that are already over-burdened with IRS paperwork will be penalized even further if they make a technical mistake on filing informational paperwork,” he said. “There’s a lot of dishonesty going on when the bill is described as raising the fines on tax violations. That’s dishonest because the fines aren’t for people who failed to pay their taxes, the fines are on businesses that for no fault of their own, they forget to file a piece of paperwork telling the IRS how much someone else owes on their taxes.”(snip)
(snip)“This is very similar to one of the ways Obamacare was going to be paid for – as Obamacare was enacted they were looking for revenue to pay for it by increasing the penalties on small businesses who failed to file 1099 forms – that was repealed because it was so unpopular,” Ellis said(snip)
At this point, TAA has already been passed by the US congress, and TPP will be decided this week. This bears close attention since it could have a major effect on independent contractor dancers ... both in terms of their incomes being reported by strip club 1099's, but also in terms of dancers being required to issue 1099's for payments they make to DJ's, bouncers etc.
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
F*ck no!!!!!!
Those pimp like club owners / manager better warn a b*tch. I have too many cotdamn worries between extras broads + perv customers increasing likelihood of raids to psycho customers trying to slick record my a$$. Everywhere I turn my identity is being compromised to the point the payoff is not worth it.
F*ck, F*ck, F*ck ....
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
If it passes will we expect to see 1099s in the mail next year ?
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
Quote:
will we expect to see 1099s in the mail next year ?
^^^ if this 'resurrected' law is similar to the earlier law, businesses will be heavily fined by the IRS if they fail to issue 1099's for payments made to other businesses which were over an annual total of $600. That's a pretty strong incentive for strip clubs who haven't already decided to issue 1099's to independent contractor dancers to start doing so.
But that's just half the story. Dancers themselves could also be heavily fined by the IRS if they fail to issue 1099's to strip club DJ's, bouncers etc. to whom they paid more than $600 over the course of a year. This of course would require dancers to obtain real names, addresses, and social security numbers etc. for those DJ's and bouncers, would require dancers to keep track of how much money was paid to each individual DJ and bouncer throughout the year, and would require dancers to issue a 1099 at the end of the year for those DJ's and bouncers total payments which also includes the dancer's real name, address and social security number.
Quote:
Everywhere I turn my identity is being compromised to the point the payoff is not worth it.
For independent contractor dancers, the implicit requirement of sharing personal details with club management, with DJ's, with bouncers, etc. via 1099's is probably as much of a concern as the tax money.
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
The damage this will do to any small service business is beyond belief. If you've ever prepared 1099s, or received more than 50....
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
This is crazy! I've always kept up with what I pay everyone in the club anyways. Valet, bouncer, house mom, tip out and management. So I actually still have those numbers from years ago because I've always gotten 1099 forms from majority of the legit clubs I've worked at. But for us to have to issue 1099's to Djs and whomever else is just absurd! But what I can tell you guys from experience is keep up with everything. Ask the clubs for receipts of your tip out every night and if this does happen, you need to carry a receipt book, and everyone you tip, write a receipt out. Make sure your receipt book is carbon copy. This way, you're not getting scammed and paying taxes on money you don't have. Cause the clubs that issue 1099s will try to fuck you! They'll add more money on your end of the year total than you really had in credit card sales, trying to pass off the extra load on you! Even though you never received that money.
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
Quote:
Ask the clubs for receipts of your tip out every night and if this does happen, you need to carry a receipt book, and everyone you tip, write a receipt out. Make sure your receipt book is carbon copy. This way, you're not getting scammed and paying taxes on money you don't have.
My own accountant warned me about this back in 2010 when the original 1099 law ( briefly ) went into effect. Elaborating on your point, let's pick an example where a girl is earning say $200 per night, but paying out a total of say $40 per night to DJ's, bouncers etc. Under present law, the girl can 'net out' her gross earnings versus payouts and record $160 as her 'business income' for the night. With an effective 30% tax rate taking $48 of that $160, her net after-tax earnings for the night would be $112.
However, under the new law, she must claim the entire $200 as gross earnings. If she does not issue 1099's to DJ's, bouncers, etc. showing the $40 worth of 'business to business' payments, she will have to pay 30% tax on the entire $200. With that 30% tax rate taking $60, and the payments to DJ's, bouncers etc. still costing $40, her net after-tax earnings for the night would now be only $100. Essentially, without issuing 1099's to DJ's, bouncers etc. the dancer will wind up paying both her own taxes plus the taxes owed by those DJ's and bouncers.
On top of this, at the end of the year, if the IRS somehow discovers that she did not issue 1099's to DJ's, bouncers, etc. she could potentially be hit with an additional $300 IRS tax penalty for each DJ, each bouncer etc. for whom she failed to issue a 1099 ( assuming that the 'penalties are tripled' statement reported by Breitbart is really the case ).
Along the same lines as dancer payments to DJ's and bouncers being reported by 1099, strip clubs now face the same situation regarding customer money spent on private dances / VIP. If the club doesn't show the amount of customer money which actually went to the dancer on the dancer's 1099, the club will be forced to claim the total amount of customer money as club income ... thus potentially being forced to pay taxes on both the club's portion as well as the dancer's portion. As such, clubs may very well start to include not only customer money spent via credit cards, but also customer money spent in cash, when calculating dancer 1099 amounts.
This new law hasn't passed the final vote yet ( which is probably going to take place tomorrow ) ... let's hope that vote doesn't pass !!!
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
I tried to look and see if this passed but could not find the right info, lot of dated information. Do you have any updates Melonie?
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
^^^ vote was postponed until the end of July by use of some technicality. The 'talking heads' are of the opinion that the vote was postponed to the very last day before congressional 'summer vacation' to allow leadership more time to pressure legislators for 'yes' votes, and also to allow legislators to 'disappear' and thus avoid news media immediately after the vote is taken. Sort of like late Friday afternoon gov't news releases, but this time they'll have a solid couple of weeks instead of just a weekend for any resulting news story to 'die on the vine'.
I can't find a link to post about what happened without also running into vitriolic political commentary.
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
Any update for this looming disaster?
Re: 'It's Baaaaaack' ! - New US Trade Authority law resurrects 1099 mandates / penalt
There is nothing serious to talk about here and, truth be told, there never was. Only the penalties increased for those who do not properly file 1099s and not by an absurd amount in any event. The important point is that the core reporting requirements did not change. That means that the only time that a club is required to file a 1099 is if the club itself pays a dancer more than $600 in a calendar year, which is the same rule that has always existed.