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No wonder it takes so long to file taxes

IRSIn reviewing the instructions for when a business needs to prepare a 1099-Misc form for payments made, I noted the following complicated exceptions: no need to send a 1099 for payments made to a corporation unless that corporation provided legal services (strange, but ok) or if those payments were for medical and health payments (again, ok) and then they note one more exception:

Fish purchases for cash. [conveniently, the instructions go on to explain that] ‘Fish’ means all fish and other forms of aquatic life. ‘Cash’ means U.S. and foreign coin and currency and a cashier’s check, bank draft, traveler’s check, or money order. Cash does not include a check drawn on your personal or business account.

So make sure to keep track of the cash payments your business is making when buying any form of aquatic life! Something tells me that this odd exception can be traced back to a big case of fraud.

January 21, 2008