(snip)"Small Business Jobs Act enacts new provision: 1099s will be required for 2011 payments
The recently enacted Small Business Jobs Act includes a provision related to reporting requirements of 'small business' expense payments. After Dec. 31, 2010, the new law requires small business operators ( i.e. independent contractor dancers ) to file 1099s with the IRS for service providers such as [sic] DJ's, bouncers, waitstaff, clubs, etc. [sic] who receive more than $600 in ( total ) payments ( from the 'independent contractor' dancer ) over the course of the year.
Even though the 1099 forms will not need to be issued until early in 2012, it will be necessary to begin keeping track of payment information on Jan. 1, 2011, and to collect completed w-9 forms from service providers ( i.e. DJ's, bouncers, waitstaff, clubs etc. ) to obtain their names, addresses and taxpayer identification numbers.(snip)
(snip)Included in the provision is an increase in penalties ( leveed against the 'small business' i.e. 'independent contractor' dancers ) for failure to file 1099s with the IRS.(snip).
With the US congress leaving town without amendments to the Small Business Jobs Act, on the first of January under the new law, 'independent contractor' dancers will be required to start individually accounting for 'tipouts' paid to specific DJ's, bouncers, waitstaff, house moms, house fees paid to the club etc. as 'business to business' expense payments.
In order to be able to deduct these payments as legitimate business expense tax deductions on the 2011 end of year tax return, the 'independent contractor' dancers will be required to collect filled-out w-9 forms from said DJ's, bouncers, waitstaff, house moms, clubs etc. immediately, and to fill out and send out 1099-misc forms to said DJ's, bouncers, waitstaff, house moms, clubs etc. in early 2012 listing the total amount of money paid to them in 2011. Failure to do so could not only disallow a tax deduction for these tipout payments, but may also result in an additional IRS penalty fee being leveed on the 'independent contractor' dancer.
It is HIGHLY recommended that 'independent contractor' dancers print out blank w-9 forms and take several of them to the club on the first night you work in 2011 ... requiring that the DJ, bouncers, waitstaff, house moms, and club manager fill out the w-9 forms BEFORE the dancer pays out any money for tipouts or house fees !!!
blank W-9 form at
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