Posted on 07/22/2010 7:57:40 AM PDT by jmaroneps37
In order to finance Obamas Ponzi like healthcare scheme, small businesses will be required to issue 1099s to vendors like Staples, Home Depot and Pet Smart if they purchase more than $600 in goods from these firms.
In other words if a dog walker in the upper West Side of Manhattan buys $610.00 worth of doggie treats to make her day a bit easier, SHE will have to issue Pet Smart a 1099 at the end of the calendar year.
Its not all bad news
While the choking tentacles of Obamacare are destroying the rest of America, a recent interpretation of the monstrous document shows its demands for an overwhelming amount of paperwork have the potential to bring the IRS to a grinding halt.
In 2012 Obamas scheme will require businesses of all sizes, tax exempt organizations AND governmental agencies to file a 1009 when they purchase over $600.00 worth of goods from a vendor. In its best Big Brother-speak the scheme dictates, If a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases.
This requirement will be especially crippling to small businesses according to The National Federation of Independent Businesses and will mean serious trouble for the IRS itself in the view of the Taxpayer Advocate (TA), an independent IRS sub agency designed to assist taxpayers.
IRS observers are saying the regulations will trigger a paperwork avalanche at the IRS which the Service is simply not equipped to handle
..
(Excerpt) Read more at collinsreport.net ...
Your business and mine are the same size - one person.
However, the new law says that multiple credit cards or multiple checks does not matter - it’s the aggregate amount done over the calendar year with any supplier.
In my case, it’s at least a dozen 1099’s maybe more. And I buy a electronic test equipment over E-bay, often spending well over $600 or a single piece of equipment, so those E-bay seller will have to supply me with taxpayer ID, address, etc.
What a mess - but of course if you are sitting in the government, it’s not a problem at all. In fact, it’s a good thing because it means you need more government employees to handle all the 1099s that will flood in.
Jack
Sam Malone on KSEV radio this AM said it’s a precursor to a VAT tax, I believe he said he was going to discuss it more tomorrow.
There was a CNN Money story yesterday that offered this explanation:
How did this sweeping provision end up hidden in the health reform bill? No one is willing to take credit for introducing the new legislation, which appeared in the Senate Finance Committee's version of the health bill last fall. Committee chairs Don Baucus, D-Mont., and Chuck Grassley, R-Iowa, both referred calls to committee staffers, who wouldn't comment on the record....
House and Senate staffers "essentially have a cupboard full of convenient revenue raisers that they can put into bills when they need it," notes Chris Edwards, director of tax policy studies for the libertarian Cato Institute. In the case of the 1099 changes, he says, "this was sitting around, the IRS wanted it and had testified in favor of it, and they needed a revenue raiser. This was just a convenient thing."
Actually..what this is is a shadowing for a VAT........
Ostensibly it's to create a record of transactions to increase tax collections. Practically speaking it will create a sudden growth in the underground economy.
The barter economy is looking a whole lot better every minute”
Might want to take a look at www.tradesource.us
“You don’t believe they actually plan on processing it, do you?”
Bingo
Just think of the error rate in this blizzard of 1099’s. Right now this is a source of a lot of errors and with more coming in from smaller taxpayers this will increase. They are trying to plug all the holes in our tax collection and the more they do the further underground they will drive many business transactions. Cash is going to be very valuable..hoard some. Cash payment already generates a discount..cash employment benefits both the buyer and seller. Go black..go Galt.
You’re right, I re-read the article, it’s the total of all purchases to any vendor.
This is insane. Even if the gov’t hires thousands of androids to handle the collection and handling of millions of 1099 forms, this is still be a huge beaurocratic nightmare, and how is any of it going to be verified? This is going to bust the IRS, they’ll have to change their computer systems, buy larger computers, new software, etc.,etc., and I doubt they could do it in 5 years, let alone 2.
I don’t understand how any of this is going to benefit any business owner or even benefit the gov’t. It shows just how in-experienced and imcompetent zero and his admin really are.
Hmmm..., now that I think of it. Maybe I should purchase $601 worth of stuff every chance I get.
I mean, if I could break up my purchases into smaller amounts, why not?
Someone correct me if I have an incorrect view of this new 1099 requirement.
It seems to me that this outrageous requirement is directed at small business to see if their reported sales on their schedule C tax form is any where close to what the sum of the 1099’s will be.
Since purchases of less than $600 do not require the 1099 submission, the sales number is going to be or should be higher than the sum of these 1099’s. The IRS will probably revise the Schedule C with a line to report the sum of these 1099’s.
If there was ever a time to go with the “FAIR TAX”, this will be the time.
Well, if we can’t starve the beast to death, perhaps this will choke it to death on paperwork.
anyone care to explain how 1099 for my suppliers pertains to health care?
Make the income tax even more unpopular and then in rides the VAT to the rescue. Might be the plan.
Biggest job killer ever - 1099’s take about a half hour to fill out.
Fed Gov jobs go up tho’ - IRS will have to add about a million new workers to handle the paperwork. Let me see, fewer private jobs, more gov’t jobs. Couldn’t be planned, could it?
Place all orders under $600 and when the IRS runs your taxes the paper work will swamp them.
Actually, it is, Susan. As part of his "stimulus created jobs program", zero is authorizing the hiring of several thousand MORE IRS agents for just these types of issues.
It IS all bad news!!
“I envision an avalanche of phony 1099 form submissions.”
I intend to file one for everyone I spend $600 a year on, utility companies, grocery stores, gas stations, clothing stores, etc.
Collapse the system!
What makes you think the VAT tax will replace the income tax?
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