Posted on 08/02/2010 7:49:01 AM PDT by Red Badger
Efforts by House Democrats on Friday to repeal an Internal Revenue Service filing requirement contained in the new health care legislation failed when the measure fell short of the two-thirds majority vote needed to pass. The measure, proposed by House Ways and Means Chairman Sandy Levin (D-MI), sought to repeal a requirement of businesses to report to the IRS any purchase from a vendor of goods or services worth $600 or more during the calendar year.
The measure failed 241 to 154 in a vote that followed party lines almost entirely.
The American Institute of Certified Public Accountants (AICPA) last month told members of Congress they should repeal the reporting requirement, which takes effect next year, because it will be burdensome and costly for small businesses to compile the data and prepare the Form 1099-MISC information return.
Furthermore, the AICPA said the information collected on the 1099 forms will not be helpful to the IRS in collecting any unpaid taxes that should have been paid by the vendor because it will be difficult to reconcile payments reported on the forms and income reported by the vendor.
Rep. Levin on Friday said the reporting requirement is "a potentially onerous burden for small businesses." However, the extra reporting, according to The Wall Street Journal, is projected to raise $17 billion in government revenues for the IRS over the next decade because it will give the IRS ability to seek out income currently not reported by vendors.
To replace that revenue, Democrats proposed curbing foreign tax credits that multinational firms use to lower their U.S. tax burden. This revenue-raising proposal, however, presumably was the death knell for a measure supported by Democrats and Republicans, alike.
Sen. Mike Johanns (D-NE), among other senators, is looking to add a provision repealing the IRS reporting requirement to a small-business tax package pending in the Senate, according to The Wall Street Journal. Several Senate Democrats last month raised concerns with the IRS regarding the reporting mandate.
this is what happens when they have to pass it before they find out what is in it.
Why does it need 2/3 majority instead of a simple majority?
JUST REPEAL THE WHOLE DANG BILL!
Currently, 1099’s are due only for non-incorporated companies and individuals with a few exceptions for lawyers.
The new rules make 1099’s due for ANY purchase over $600.
This will be a burden on ANY company large or small as an informational form W-9 must be collected for many more vendors.
And they WON’T repeal it or lessen the burden. Time to drain the swamp! Can’t wait for November!
1) Take control of the House in November
2) Start repealing this crap
House Rules.........
Yep, this will be a huge burden to small businesses. And the IRS says that these 1099s will not really help them in auditing and verifying that income and taxes were paid correctly? Then what’s the point?
This sounds like something which would be repealed if Congress had any common sense.
If I had to start a business tomorrow, this requirement alone would make me think twice.
From what I have read, it’s not just a single purchase of $600 or more, it’s if there are a TOTAL of $600 in purchases from a vendor during the tax year. That will require beau coup accounting............
Just neglect to enforce it - like Illegal Immigration Laws. Or Tax Evasion Laws for democrats.
I might buy $250,000 worth of Vendor “A’s” equipment. I have to pay that Vendor $250,000 plus sales tax. But I guess the IRS sees me depositing $250,000 from my Customer to pay Vendor is profit. Complete BS!
I’ll stop selling equipment to Customers and require them purchase directly charging only for labor to install. I have enough hard costs directly that keep profits next to zero.
How the heck to we send Mobil and other gas stations 1099’s for over $600.00 worth of gasoline in a year. Think about that one. What about Progress Energy and the water company? Insurance anyone? What about the grocery store? How about ___________________?
Buy more than $600 in office supplies from Staples for your home business - 1099.
Pay the utilities on your rental condo - 1099
Pay for repairs or buy furniture for rental property - you get the idea.
Nightmare.
I know it’s probably impossible, but I would like to know who put this in the bill in the first place.
A house painter can buy $600 in paint for just one job!...........
OBVIOUSLY A LIBERAL DEMOCRAT WHO HAS ABSOLUTELY NO IDEA ABOUT HOW BUSINESSES RUN...................
The tax codes have become so ridiculously complex that people will simply just not do it.
Let the IRS take the time to sort it out. They will be so overwhelmed that they either hire several hundred thousand more workers, train them and audit every American, or just ignore it themselves.
If the Libs ultimately are successful in repealing this provision, wouldn’t that just be another strong indicator that the Obamacare individual mandate is not a “tax” as the DOJ is attempting to argue in court?
Communists win again.
The time for massive non-compliance is here.
I just started a home based business. My first order from one vendor was over 600 dollars.
I’ve been in business for 1 month and I already have 4 vendors that will get 1099’s. 3 of them are over seas. I wonder how that works.
I am leaning towards not dealing with the 1099’s at all.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.