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.
Why would Republicans oppose this? Makes no sense.
I’M THINKING OF STARTING A NEW BUSINESS.
PRINTING 1099 FORMS...................
DON’T KNOW.
A LINE IN THE BILL SAID “THIS TAX IS NOT TO BE CONSIDERED AS A TAX.”..........
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.
They couldn’t just admit it was wrong. I am sure there was much to it than this small blurb too.
They don’t. The Dems tried to pull a bait and switch.............
Why do Democrats want records of purchases over $600? What is the average price of a firearm when you add in the background check, taxes and ammo?
It does two things that I can see:
It saves the USPS, forcing us all to mail these 1099s.
It hides something among the mountains of 1099s. Somebody wants to get away with something, and one way is to hide it in plain sight.
Maybe I’m wrong, but the 1099s apply only to business purchases.
I was thinking, USPS, UPS, FEDEX, Staples, Walmart etc. I didn't even think of Mobil, Sunoco, Citgo. Does it go to the corporate headquarters or to the local franchise. How the hell do you find out who owns every business you do business with. This is Crazy.
IT’s not just SINGLE purchases, it’s $600 IN TOTAL for the WHOLE YEAR!...............
Let the IRS take the time to sort it out.
The article stated that the support for and opposition to the repeal broke along party lines. The Dems are the majority, so it looks like the Republicans voted *for* the repeal. Democrats opposed it (even though it was submitted by a Democrat), and won. If I'm reading this incorrectly, someone please let me know.
If this is indeed the case, it makes me even more angry. The House Republicans were willing to remove one of the warts from Health Care Reform. That tells me they don't have the guts to kill it in its entirety.
It's the vendor that will have to generate the 1099s. You'll be filing one every time someone buys over $600 worth of stuff from you.
First step to the VAT tax.After they know all the purchase points in each step of getting a product to market they then say , now add in $ xxx.xx and send it in to the I.R.S.Have a nice day.
The kicker is this monster was hidden in the dang HEALTH CARE BILL that Nancy said “we have to pass it to find out what’s in it”.Torch and pitchfork time is getting nearer friends.
Govt is attempting to manage by computers. Technology is not a good substitute for management and common sense. The tax code will now be implemented by programmers in India who don't know a damn thing about taxes and that is the way the govt wants it.
You are correct. But think about it: here's one example. My wife is a self employed sales rep. She travels the Northeast seeing customers. She is now required to keep track of all her gasoline purchases, keep track of who owns the gas stations and and at the end of the calendar year figure who received more than $600 and prepare and send them an IRS 1099 form. In addition, she will have to keep track of all hotel stays, meals purchased, UPS expense, USPS expense, cell phone charges, Staples, Walmart etc. This is crazy.
3) Watch as Obama vetos the repeal bills
4) Watch and cry as the 2/3 majority to over-ride vetos can not be found.
5) Henious taxes will continue in place until at least 2013.
No, the Republicans voted against repeal. The title of the legislation is:
“To amend the Internal Revenue Code of 1986 to repeal the expansion of certain information reporting requirements to corporations and to payments for property, to eliminate loopholes which encourage companies to move operations offshore, and for other purposes.”
As always, the devil is in the details. Lord only knows what those “other purposes” are, but if Democrats were for them, they can’t be good for America.
Apparently, the evil hidden in that bill outweighed the good that would come from getting rid of the 1099 mandate.
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