1099 Contractors Being Challenged Again

IRS looking at 1099 contractors again. Are you prepared? Penalties are huge if reclassed to employee!

Dredit Card Debt Down!

Consumers paying off credit card debt much faster than before the Great Recession!  Maybe caused by bankruptcy filings?!  LMAO

With unemployment and underemployment at record highs and businesses shutting their doors everyday, how can consumers be paying off their debt?  The only way I can think of is that the debt is being discharged through bankruptcy. 

Okay, maybe some are biting the bullet and cutting back on their expenses, which is the smart thing to do.  But with retail sales numbers flat or slightly better than last year this strategy of cutting back does not seem to be widespread. 

What will happen when the double dip recession slaps us all in the face and layoffs, downsizing and reduced hours start all over again??  We will all wish that we had cut back, reduced our debt and been better prepared.

Good luck to all those trying to survive out there!

Reg Baker, CPA
www.regbaker.com

Getting Better or Worse?

Corporate downsizing continues by cutting hours or staff. Bankruptcy’s increasing; especially those converting Ch 11 to 7 which do not show as a new filing (thereby understating the numbers).


I can't help but wonder if the economy is getting better or continuing to drift downward. Many of my clients are in desperate need of cash flow. Many have filed Chapter 11 to reorganize but cannot survive even with court protection. They have no choice but to convert to a Chapter 7 (liquation) but are having a challenge paying the fees and costs to shut down. So there are running away in the middle of the night……

It may be another two year or more before we see any significant signs of recovery. If this is the case it will be a very long two years!

Good luck to all of you struggling to keep your heads above water!

Reg Baker, CPA