The IRS is always looking for low hanging fruit to boost their revenues, and what better way than to fleece the small business owner.
Ten years ago I had incorporated my business and that created more IRS paperwork that I could handle. Taxes has to be paid quarterly, and the forms aren't complicated but they make no logistical sense. It literally took me a day to file, reading the rules and filing out the forms and writing the check. Every three months I'd have to re-read the rules because again, unlike by business which is based on the fixed laws of physics, IRS rules are arbitrary and can change at the whim of some POS in a suit.
So eventually I hired a CPA to do that for me. He filled out the forms, told me the amount of the check, I'd sign the forms and mail the shit to the IRS.
Then one day I got a phone call, some little biatch at the IRS office, demanding that I now pay a $2000, 'because I had used the wrong form'. Then the $2000 became $4000 because I told her to pound sand.
I called my congressman to complain, and he told me that since this was a corporation, I'd have to hire an attorney and go through another channel.
To avoid this scam I killed the corporation and went back to running the business as a sole proprietor with a simple DBA. No more quarterly returns. And if the IRS fucks me, I can call my congressman.
Since then my business has grown and I have consultants that work for me as non-employees. This avoids all the employee payroll tax bullshit. All I have to do is estimate my tax bill before December 31 and write a check for the year, less a few hundred bucks. Then file by April 15 and pay the remainder. Then send my consultants 1099-MISCs before February 1, then send a copy of those plus a 1096 to the IRS by March 1. Simple, and has gone like clockwork for ten years.
Last year they added a new variant of the 1099 called the 1099-NEC: Non-Employee Compensation. It is obviously used for small businesses who prefer not to have employees because of that time and income destroying burden.
Now here's how the IRS bully figured out how to screw us small guys. When you file a NEC, you must file the corresponding 1096 by FEBRUARY 1. AND the 1099/ 1096 forms, top sheet is in red ink that you are not allowed to download and send a facsimile copy. You MUST obtain an original print from IRS, archaically type or print on that, then mail the original. These forms are not available at the local post office, you have to send away for them, and they take at least two weeks to mail them to you. Mine took almost a month.
So unless you are big enough to have an office manager or accountant to be on the ball and order this shit before the end of the year, it is improbable that you will make the deadline.
I wonder how much Little Miss IRS Biatch will decide how much to fine me this time.
Ten years ago I had incorporated my business and that created more IRS paperwork that I could handle. Taxes has to be paid quarterly, and the forms aren't complicated but they make no logistical sense. It literally took me a day to file, reading the rules and filing out the forms and writing the check. Every three months I'd have to re-read the rules because again, unlike by business which is based on the fixed laws of physics, IRS rules are arbitrary and can change at the whim of some POS in a suit.
So eventually I hired a CPA to do that for me. He filled out the forms, told me the amount of the check, I'd sign the forms and mail the shit to the IRS.
Then one day I got a phone call, some little biatch at the IRS office, demanding that I now pay a $2000, 'because I had used the wrong form'. Then the $2000 became $4000 because I told her to pound sand.
I called my congressman to complain, and he told me that since this was a corporation, I'd have to hire an attorney and go through another channel.
To avoid this scam I killed the corporation and went back to running the business as a sole proprietor with a simple DBA. No more quarterly returns. And if the IRS fucks me, I can call my congressman.
Since then my business has grown and I have consultants that work for me as non-employees. This avoids all the employee payroll tax bullshit. All I have to do is estimate my tax bill before December 31 and write a check for the year, less a few hundred bucks. Then file by April 15 and pay the remainder. Then send my consultants 1099-MISCs before February 1, then send a copy of those plus a 1096 to the IRS by March 1. Simple, and has gone like clockwork for ten years.
Last year they added a new variant of the 1099 called the 1099-NEC: Non-Employee Compensation. It is obviously used for small businesses who prefer not to have employees because of that time and income destroying burden.
Now here's how the IRS bully figured out how to screw us small guys. When you file a NEC, you must file the corresponding 1096 by FEBRUARY 1. AND the 1099/ 1096 forms, top sheet is in red ink that you are not allowed to download and send a facsimile copy. You MUST obtain an original print from IRS, archaically type or print on that, then mail the original. These forms are not available at the local post office, you have to send away for them, and they take at least two weeks to mail them to you. Mine took almost a month.
So unless you are big enough to have an office manager or accountant to be on the ball and order this shit before the end of the year, it is improbable that you will make the deadline.
I wonder how much Little Miss IRS Biatch will decide how much to fine me this time.
