Posted on 07/22/2010 7:57:40 AM PDT by jmaroneps37
It is.
However, in cases where a business is buying from an individual, such as purchasing coins or firearms from a private party, the business will apparently have to still file a 1099 if the aggregate amount goes over $600 in a year. (And that's very easy, since one firearm or gold coin alone is often worth more than $600.)
In order to file that 1099, the business will have to require a Socialist Security number from the individual so that the business can fill out the 1099.
The IRS does receive the 1099s and related submittal form 1096 but HHS is going to be in charge of sorting it all out because they have the responsibility of nearly everything in the healthcare bill.
What bugs me and what no one is explaining is every company your business does business with is already accounting for the dollars you spend with them in their accounting records and therefore, their tax returns. That’s not counting your landscaper or nanny or housekeeper but they are the ones this provision should have been intended for - not corporations that already keep track of their income from sales.
Who is the genius who came up with this crock of doodoo? The 1099’s arrive at the IRS, somehow they get funneled to HHS and then who’s going to follow these 1099s through any company’s books? Someone shows up at the door of United Air Lines (are they still in business) and says, “I’d like to audit your books and see if your accounting and income statements reflect $1000.00 in airfare paid by John Smith last year.”
United: Sure, come right in. Would you like a pot of coffee and perhaps a cot for the time you’re going to spend here trying to find where we recorded John Smith’s purchases?
“”such as purchasing coins “”
The buying/selling of coins aspect of this issue has been at the forefront of discussions for about four to six months. If you sell your personal coins, the purchaser (coin shop or other) will have to report what he paid you on a 1099. If you can prove you bought a gold coin for $600 and sold it for $1000, you will be responsible for taxes on only the profit. If you don’t have solid proof of your purchase price of that coin, you’re going to be on the hook taxwise for the full amount you sold the coin for.
I guess the coin purchaser makes the 1099 out for the amount he bought the coin for and it’s up to the taxpayer to come up with the profit on the sale and hopefully can prove the base cost of the coin.
Some aren't so sure of that any more.
Anybody know how this is different from current law?
I don't.
There is NO such requirement - for a small business to file a 1099 + 1096 + 1099 (remember YOU are mailing the extra paper to EVERYONE and EVERY COMPANY that you have SENT more than 600.00 dollars to in the past year.)
Now, I just keep track of what receipts I have taken in, and what expenses I have spent out: The receipts (what I have spent) get saved. I put the receipts and expenses on the Schedule C. I put the results (profit or loss) into the 1040.
NOBODY (people who I sent money to, people I get money from) gets sent ANY federal IRS paperwork.
Overwhelm the system until it breaks. Classic Cloward Piven strategy.
So do I have to send a 1099 to my landlord for every month rent I pay for my office rent?
What about my yearly eo insurance and copy machine?
Agreed. I was speaking to my cpa today and he is a mild mannered guy who is beyond livid. When you lost this guy, you lost most people.
I have been a raving loon forever, but that’s besides the point.
Outstanding question!
“The only power any government has is the power to ... crack down on criminals. Well, when there aren’t enough criminals, one makes them...you create a nation of lawbreakers – and then you cash in on guilt.”
I have a small business and the thought of this is just beyond maddening.
I honestly HATE the government more every day. I leave everyone alone, commit no crimes, etc and feel like I am getting squeezed by people I would not hire as an intern in my office daily with their grand schemes.
Its really awful and if civil unrest or something likme that ever broke out, I would cheer loudly.
Yeah. I just had three responses killed, prior to you. Maybe, the Boss knows more...naaahhh! Hey ....
The Democrats are converting hordes of people to Republicans before my very eyes.
I remember hearing a woman describe her own genesis to Republican. She was very liberal and moved to Hawaii where she created a small business. 5 years of horrific taxes and regulations later, she was a devout free-market conservative Republican.
I hope this 1099 law gets implemented. I honestly do. The idiots are pushing a horde of independents on both sides of the isle into the arms of Conservatives. This is a good thing. Oh, it will be painful as hell in the short term, but the sooner we get a Republican Congress to overturn Obamacare’s socialized medicine and the rest of his communist laws, the better off we will be.
The key will be holding the Republican party’s feet to the fire and MAKING them overturn these laws. Once they are in power, they may just fall in love with all of the extra power these laws give them.
I'm torn between thinking the best way to fight is massive civil disobedience (don't even file the ones you do now) and massive overcompliance (send one in for everything over $1). Problem is if half the people do each, it won't hurt the IRS a bit.
Or go the opposite direction and try not to do more than $599 business with any one entity, thus denying them even the information they're getting now.
This will work especially well if a Republican House refuses to appropriate the funds to employ the necessary agents. It will still be the Law of the Land, of course, barring two thirds of both houses, but enforcement will have be by volunteers ...
Absolutely.
I feel for those that have managed to hang in so far. There’s an absolute avalanche of new taxes, fees, rules and regulations to comply with headed their way and many won’t be able to survive.
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