[Harp-L] ASCAP Lawsuits now Paying Under the Counter

["Bill Kumpe" <bkumpe@xxxxxxx>]

Dave Fertig said:  "But I am less sympathetic for club owners who already
underpay bands, skip ascap.bmi fees, pirate cable and pay employees
under-the counter, then cry "foul" when they're held accountable.  At least
they should pay the bands better!"

A lot of that "pay me cash under the table" crap is going to be history
after this year.  As a part of "health care reform" the Obama administration
recently passed legislation requiring that ALL businesses issue 1099's to
any entity or person including vendors they pay more than $600.00 per year
with a copy going to the IRS. This will really tighten up the loose
reporting of casual or misc. expenses and income. Basically, the IRS is
going to have the taxpayers snitching on each other with 1099 paper trails.
Smart businesses will demand that checks be issued so that their accounting
software will automatically issue and file the 1099's.  I am explaining it
to clients this way, "You had better have 1099's to back up just about all
of your claimed expenses or you could wind up paying taxes on the difference
between your gross receipts and what you can prove you disbursed as expenses
by your 1099 records.  The easiest way to handle it is to get good
accounting software and use it religiously."  And you can darn well betcha
that most club owners, like any other small businessman, are not going to
"eat" their musical expenses. 

Bill Kumpe