Stealth IRS changes mean millions of new tax forms

CNNMoney.com ^ | 05/21/2010 | Neil deMause

[PeterPrinciple]

Somehow, just somehow, I see an increase in barter transactions in the nation’s future.

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There is a 1099 form for that also. Happened during the economic turndown 30 years ago........................

[PeterPrinciple]

There is a purpose.

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Business audits will be by computer, they will only allow deductions in the total amount of 1099s that you filed

[Man50D]

Unless the 16th amendment is repealed the IRS will remain and any alternative tax structure will be imposed in addition to the income tax.

That won't happen with The Fair Tax. The Fair Tax Act(HR25/S296) bill specifically cites defunding the IRS and has a sunset provision whereby The Fair Tax will be repealed if the 16th Amendment is not repealed within seven years from when The Fair Tax is passed. Moreover House Joint Resolution 16(HJR16) calls for the repeal of the 16th Amendment.

[livius]

This is unreal. I can’t imagine how businesses can be expected to comply.

[livius]

The problem with the flat tax is what it would apply to, which would presumably be your income. And in that case, how do you report it to the government?

So even with a flat tax, you still have the IRS sitting in your living room 24/7.

The Fair Tax doesn’t even let them in the door.

[Cowman]

If you want to know why the IRS needs to be abolished check this out

http://www.freerepublic.com/focus/f-chat/2488403/posts

[dfwgator]

They should just call it, the “Tax Accountant Full Employment Act.”

[EBH]

I can’t imagine how businesses can be expected to comply.

These are pieces of a giant puzzle. All these huge pieces of legislation contain parts of the puzzle. The bailouts had the electronic health record thing in it...long before the health care bill was a blip on our radar screen. Inside the health care bill ...tax reporting reforms using the 1099. What's inside the financial reform bill?

There will be absolutely nothing that doesn't get tracked, taxed, documented. I am wondering how they will follow cash?

Even my micro-enterprise will have to be issuing 1099s to my printer. The $600 figure captures even the smallest of businesses in one form or another.

So, the guy who cuts my lawn...that I've paid in cash for years...will now need a 1099 from me. We have no written contract, it is a handshake, old fashioned way of doing business.

[Visceral]

Don’t forget that all these 1099’s will have your social security numbers on them. I wonder how our Congress will save us from this problem? Maybe a tattoo on our forehead.

[snowsislander]

This bit is the most telling:

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.

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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."

It might have been convenient for them, but this is going to have very bad ramifications for our country.

I hope that if we can send a host of new representatives to Congress that they will have the good sense not to employ these same parasites who do this. We have no idea which one of them put this measure in the bill, and neither do our legislators.

[PeterPrinciple]

All tax preparers must be registered and certified with the IRS by 2012. It sounds like that is not a big deal but there is a BIG difference between being certified by a professional association and being registered and certified by the government.

[Jack Hydrazine]

It’s a sales tax! I’m sure you’d like to see a sales tax of 25 percent like you see VAT taxes in Denmark! That’s really fair in my book. How about yours? That’ll really encourage people to get out there and spend, spend, spend!

How about we simply cut wasteful, government spending first and go back to a simple flat tax of say 5 or 10% for all individuals and all business? IIRC, Russia has a flat tax of 10 or so percent which has proven to be a real winner in encouraging people to create wealth.

Show me how a ‘fair’ tax is going to make the IRS go away. Does the fair tax fairy make the IRS go >POOF!<? I haven’t seen any fair taxers show me how that is going to happen.

The IRS will never go away. They are a most recalcitrant group of thugs who believe we the citizens have never paid enough and will never pay enough taxes to satisfy their hunger.

[green iguana]

Another job killer from Obimbo.

[Pecos]

Just swimming with the fish, and staying below the radar horizon.

[thulldud]

Don’t forget that all these 1099’s will have your social security numbers on them. I wonder how our Congress will save us from this problem? Maybe a tattoo on our forehead.

No, no, you can get it applied to the back of your hand instead if you want. Now go back to sleep.

[sport]

I understand. Everything they do has a purpose, my FRiend. The purpose is to increase their power and control.

[Gorzaloon]

All I can do is wish you luck.

[EBH]

I am just about done with all this junk.

Here’s the honest to gosh truth:

I don’t want to work anymore, I don’t want to have a bank account anymore, and I don’t want to have to see a dr., dentist, etc. anymore. I am ditching my credit cards.

I am done, just totally done.

All our freedom is gone. It is long past over for the United States.

[Principled]

Gotta jump in.

The “fairtax” is a national RETAIL sales tax or nrst. It is the polar opposite of a VAT.
The nrst shows the tax amount on each receipt. There is no more withholding. There is no more FICA tax. There is no more business tax hidden in higher prices, lower wages, or reduced ROI.

The flat income tax however IS a VAT. It is a “subtraction method VAT”. The flat income tax retains withholding. The flat income tax retains both ee and er FICA on top of the income tax. Business still must pay income taxes and pay them in by charging higher prices, paying lower wages, or reducing ROI. The flat income tax hides taxes.

[Man50D]

It’s a sales tax!

You're right! I posted that claim in reply #7 but it is not a VAT!

I’m sure you’d like to see a sales tax of 25 percent like you see VAT taxes in Denmark!

You either have a short memory or don't read my posts at all. Again, read my reply #7. The Fair Tax will replace all federal income taxes. It will not be imposed in addition to the federal income tax as would a VAT. The Rate will be 23%.

How about we simply cut wasteful, government spending first and go back to a simple flat tax of say 5 or 10% for all individuals and all business?

Where is it written you can't do both concurrently? What part of another flat income tax will evolve back into what we have today just as our present income tax code has done over the last 97 years? It will happen faster due the thousands of lobbyists today that didn't exist in 1913 and keep the IRS with its abusive court system. What part of my previous explanation another flat income tax will still maintain the abusive IRS and its court system did you not understand?

Show me how a ‘fair’ tax is going to make the IRS go away.

You could easily do that yourself by simply reading the bill but instead you pretend to either play ignorant or are in a deep state of denial I already made this point to you. Per the Bill:

SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED FEDERAL TAXES.

(a) Appropriations- Appropriations for any expenses of the Internal Revenue Service including processing tax returns for years prior to the repeal of the taxes repealed by title I of this Act, revenue accounting, management, transfer of payroll and wage data to the Social Security Administration for years after fiscal year 2013 shall not be authorized.

There will be a much smaller Sales Tax Bureau. The STB will not be going after individuals because they will pay the tax at the point of sale! There will no longer be an agency breathing down anyone's neck threatening them with fines, penalties and demanding they appear before a tax court!