Monthly Archive for May, 2010

Costly 1099 Mandate

May 24th, 2010 | tags: Board Services

Buried deep within the recent healthcare bill is a mandate that will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare.
In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules:
The 2010 Health Care Act adds “amounts in consideration for property” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(1)) and “gross proceeds” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(2)) to the pre-2010 Health Care Act categories of payments for which an information return to IRS will be required if the $600 aggregate payment threshold is met in a tax year for any one payee. Thus, Congress says that for payments made after 2011, the term “payments” includes gross proceeds paid in consideration for property or services.
How is the IRS going to deal with untold billions of 1099s? Also now almost every transaction will require a 1099 with you SS# or Tax ID# on them. This is going to make ID theft much easier.

Social media is like the apple in the Garden of Eden

May 19th, 2010 | tags: Board Services

Thoughts on social networking by Ashley forbes Kellogg:

Are you sending an accurate message?  The answer to this question has never posed a stronger consequence than it does in reference to social media. Reputations have been lost, people have been fired because they tweeted inappropriate things. Friends should never let friends tweet drunk.

For whatever reason I am occasionally called to give my opinion and over the last six months I’d been asked three times to chime in on my thoughts regarding social media. The last interview I popped off with, “Social media is like the apple in the Garden of Eden.” Of course it’s the one that made print and there was no way to suck in my words. They were indeed cast to the wind.  At that moment I knew that I could no longer be casual about the new “hot topic” of social media.

Four times a year, I invite ten great minds to engage in conversation, debate and discuss a topic over a meal and bottle (or two) of wine. After my realization that I could not longer ignore social media, I assembled my salon. After a three hour lunch and several meetings with experts (sans wine) here are the highlights of my research. Social media will:
·        Change the way people buy products; it cannot be ignored
·      Alter how humor is communicated
·        Revolutionize not only how we transmit information but also how we “find” people.

This, to me, is the astounding part, and the rationale for all those reluctant folks to join in. A colleague using the web was able in two hours to find top-notch software managers he had worked with 15 years ago that he thought would be perfect for a current project. A few years ago this would have been like finding a needle in a haystack.

·        Increase transparency and consequently boost morale and trust- consumers are in control of marketing/advertising messages
·      Provide the next generation with the groups they want to be identified with. Generations following the “Baby Boomers” lacked the herd we took for granted: small towns that changed with the speed of glaciers, small schools and churches where everyone knew each other and played the same role for years
·        Eat up a great deal of time and money if you don’t have a plan

Shortly after the salon, I received an email from a guest at the table. He mentioned that I was particularly quiet and he had missed my usual passion. I thanked him and mentioned I’m only passionate about something I can get my arms around. In truth, I have gone from adverse to interested to intrigued and my research continues.
I do a lot of things but I am, at heart, a teacher.  I found early on that you are the most effective when you are curious – not when you know it all.  So, I’m learning about this beast and reporting what I find. Let me know what you think?
Ashley Forbes Kellogg

Plea for Tax Simplicity

May 10th, 2010 | tags: Board Services

Earlier this month when I finally completed my Income Tax return (120 pages this year!) I was again reminded how complicated this effort has become. I am not sure how I would do it at all without TurboTax.  I understand that I am one of the minority (less than 18%) who do not use professional paid help for their personal income Tax.

Here are a few facts:

•            The tax code was 400 pages in 1913

•            The tax code is now over 70,000 pages and growing fast.

•            It take the US public uses the equivalent of 3.8 million skilled full time workers  to handle this paperwork

•            Six times the number of people are working on tax paperwork than there are making autos!

This has gotten entirely out of hand. Can you imagine the increase in productivity that a real flat tax, no deductions, no special programs for every considerable special interest group, would provide for our economy?