new law starting jan/1 for scrap yards - Page 2

Mick- when you say 'their' bank records, do you mean the IRS or the scrap yard?

Our scrap yard here in town currently pays out in cash! But with the new law, I could see that changing.

Yeah, that's what I was gonna say. My yard pays cash too, and cash is supposedly much harder to track and tax for the IRS.

I've probably never gotten more than a couple of hundred at one time, but I've never gotten anything but cash.

(The only exception to that dollar amount was way back in about 1980, when I worked for a junkyard for a while. I hauled a dumptruck load of auto radiators to the yard, as instructed by the boss. I about fell over when they handed me two grand, in cash. The boss was kinda surprised too.)

No, I get cash every time no matter the price.

All the yards I've dealt with pay cash for everything except cars, and i think that's just to protect them with a paper trail if the car comes up as stolen

I use two yards. One pays cash, unless it's more than $100, then they issue a check. The other is cash. Every time.

Both yards take ID and a note of license plate #.

I get paid cash here also my biggest load i took in was $2319.57. I figured everyone got cash thats why i made the comment above about Linking it to you

Is this for only businesses or individuals too? I'm kinda confused. =/

Wow Mick we are screwed then. guess I will LLC. Hmmmm with this law i think it may cut out a lot of the Peddlers.

I have to think on this one.

It could very well cut into the price you are paid at the scrapyard too. Think of all the extra expense of keeping track of how much has been paid to the hundreds, no, thousands of people that come and go at a typical scrapyard each year. You think the cost for that record keeping is going to come out of their profits? Think again...

Well maybe John Boehner the incomming Speaker of the House said they will kill the health care bill if they can't do it all at once they will Cut it to piece a section at a time untill nothing is left in it.

Here is a link from CNN.com discussing this new law. http://money.cnn.com/2010/05/05/smal...re_tax_change/

Well, at least we know when it actually goes into effect. Sounds like we have 1 more year before this goes live, if it goes live. I was at the scrap yard Thursday. Took in a small load, was almost embarrassed by the weight of the tin (60 lbs), but my main goal was to go and ask some questions regarding the 1099's to get some better detail. Apparently they haven't gotten to much about it yet. The owner said it seemed to be with the Illinois governor that tried to sell his senate seat. Rob Blajovich or however that is spelled. He said that it seemed to him, the bill was drawn up to help prevent copper theft, but the true reason behind it was to go after people receiving state aid and not reporting the additional revenue that they receive from various forms including scrapping. The owner also thought that it was just an Illinois thing, but then he is older and doesn't get on the net much to find out the bigger picture and in smaller communities, the news isn't worth watching much except for sports and weather because the rest just doesn't seem to affect us.

But I see in the article that it is pretty much going after everybody so yeah. I thought I had a better understanding on it but then it got tossed out the window, but after reading that....the understanding is clearer.

I guess we won't know for sure about what it does until the IRS tweaks it to there liking. The main thing I have to say now with what I read is..."I am glad I am a scrapper" and not somebody that does tax preparations. That job seems like now it would suck even worse than before.