Posted on 08/02/2010 7:49:01 AM PDT by Red Badger
control, I suspect. they want to see how every single person in the country acquires every single penny that they make. even if it won't help collect taxes, it will probably come in handy one day.
Our accounting department has told us that their contacts in the IRS are not happy about the requirement either as it is going to generate a lot of information overload which will actually hinder their efforts to collect from tax cheats by focusing them instead on minor discrepancies which will inevitably result from this whole additional new data set.
Short term solution is a cash based business servicing individuals who don't have to report the 1099’s. But eventually they will find you guilty of something and haul you off to the gulag as an example to others..........
Nobody will comply because they can’t comply.
Penalty for not filing:
$50 per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses).
Senator Johans is a Republican, not a democrat. Nice try, Media!
Okay, I see that in THIS article, which offers a bit more detail. The "party line" comment in the article above was just a shot at Republicans for being united against the repeal.
Regardless of what those "other purposes" might be, this issue should not be detached from ObamaCare and neatly swept under the rug.
I’d look into this immediately with an accountant, were I you. Because, the way I understand it, if you don’t have a tax id number, or are unable to get one from your vendor, you must withold income tax at a rate of 28%. I think this is one of the reasons the IRS hopes to raise the 19 billion it thinks it will get from this provision. It’s a 19 billion slush fund, that overseas entities will have to pay, then apply to get back. But I am not an accountant, so I’d check.
JUST THINK OF A HOUSE PAINTER.
He has to buy paint, specified by the homeowner, that could easily be more than $600 including supplies. If each homeowner specifies a different brand of paint, he might have to go to a dozen or more different vendors to by that brand of paint. His CODB will go through the roof...................
I think that's the idea: to drive the small independents out of business so there are more jobs for those glorious unionized painters.
Of course, some will barter or sell their services for cash to beat the system. This is exactly why you find black markets, tax avoidance and tax evasion schemes more prevalent in higher tax, more socialized countries.
If you have been to the IRS web site... you now have to purchase special 1099 forms (you can’t download them from the site as in the past). These forms are $75 for 100 forms (or something like that). Don’t worry...this is not considered a tax...
They ought to just call it the “Tax Accountant Full Employment Act.”
scratch that...they don’t charge for the forms...you just have to order them via mail now and can’t download them.
Why do they co$t me if I’ve already paid for them with my taxes?.............
Ping to post #52..............
Nightmare not just on the issuer’s side, but on the vendor’s side too. Imagine being the phone company and receiving millions of 1099’s from businesses. This is just a disaster all the way around.
So why is it that the Democrats are trying to repeal the provision and the Republicans are opposing that repeal?
The Republicans are probably looking that the $17 billion windfall that they estimate will result. Talk about missing the forest for the trees!
My prediction is that the feds, in their infinite wisdom, will start requiring that income reported on a 1099 will have to be reported as a separate line item (pages and pages of itemization) by the recipient.
Ridiculous and crushingly burdensome?
Yes, that's why they'll do it.
The Dems hitched the legislation to this horse hockey legislation...............The Republicans had to vote against it.............
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