Posted on 09/09/2010 8:08:31 AM PDT by george76
For the non-business owners out there — here is how 1099 paperwork is filed currently. Form 1099s are like a W-2 for contractors — people who do work for a business but aren’t employees — designed to inform the IRS that a business has paid someone to do some work. Today, two limitations keep the flow of 1099s to a manageable level. First, businesses have to send 1099s only to unincorporated contractors, not to corporations. Second, 1099s only reflect the purchase of services, not goods.
The flood begins in 2012
In 2012, Section 9006 erases both of these limitations, and the flood begins.
Beginning in 2012, every business-to-business relationship exceeding $600 cumulatively in a given year must generate a pair of 1099s — one for the vendor and the other for the IRS. In Montana, another copy goes to the state (as well as one for the business’ records). Suppose a business has 20 truck drivers, each of whom purchases gas and turns in receipts for reimbursement. The business owner will have to take hundreds (or thousands) of receipts from all the drivers and collate them by gas station, and then they’ll have to gather a taxpayer ID number or Social Security number from each gas station where receipts exceed $600.
I’m sure you’re asking yourself what this tax reporting has to do with health care? And the answer would be: absolutely nothing.
(Excerpt) Read more at billingsgazette.com ...
The goal has always been ‘to make every person a criminal’
Once that is fully enacted, the selective enforcement begins.
If you drive a truck and are a union member then you get a pass. If you are your own owner and a non-union individual then you will be audited every year. The ppw complexity will force you to hire an accountant, just to stay out of jail.
Very coherent summary of the 1099 debacle and the need for repeal.
Worth passing around.
Talk to your two Senators
The law is non enforceable. The solution is to just not comply.
I choose to ignore it until audited and compelled.
Rec’d email from Nebraska Senator Johanns this morning:
Senator Johanns e-Update
Sept. 8, 2010
Next week, the Senate will vote on an amendment I offered to support our nation’s small businesses. It repeals a costly new 1099 tax paperwork mandate embedded in the health care law. The current mandate will add undue burden to small businesses, local governments and even charitable organizations. At a time when many are struggling to stay above water, it’s crucial for Washington to adopt job-friendly policies that help, not hinder, economic growth. I hope my colleagues will support this common-sense legislation and help put people back to work.
I asked this question of ted poe at a town hall and he said they are trying to get this to be repealed
These effing Democrats are the ones who passed it. Now they’re trying to tell us how hard they are trying to help us. My contempt for them is beyond words.
See post #2. He is absolutely correct.
I think the law makers are suspicious of taxpayers .... they put in all these extra reporting requirements to catch the tax cheats. They are understandably suspicious because so many of the law makers themselves are tax cheats.
60 plus percent of Americans want the whole Obama Care repealed
It's sort of like Sarbanes-Oxley, which was a knee-jerk reaction to Enron and the like, but was also in essence a jobs program for the Big Five (or whatever is left) accounting/consulting firms.
We spent loads of money on IT compliance with Sarbox, which had little benefit for our business, but generated loads of billable hours for consultants. As if the Enron debacle was caused by IT...
These new government unfunded mandates will hurt many small businesses and force many of them to downsize or close. Many employees would then go to part time or be laid off.
Second, the businesses will often be forced to pass on these new costs onto the clients / customers thus increasing the cost of food and more.
I just looked it up. A typical fuel capacity of a long-hauler semi is around 200 gallons, going up to 300. On a 200, when prices are above $3 a gallon you’d have to generate a 1099 every time you gas up, even if you never hit the same gas station twice in a year.
A huge mess.
Also if you sell / buy stuff on Ebay or Amazon.
Buy airline ticket (s) over $600 and a business would have to file a 1099-k with the IRS and send one to the airline itself.
Ditto if a small company buys $600 worth of sandwiches from a local shop, spends $600 a year for coffee...per year .
Tax id numbers will be floating all over the place waiting for more fraud.
1099 requirement... data mining for implementation of VAT. Nuff said.
My husband and I both own small, one man businesses. This paperwork will kill us. There is no question that I will shutter my business if this is not repealed.
One of the unintended consequences of this law will be to explode the black market. How many people will opt to work for cash, just to avoid all the hassle. Small part time businesses, who just get a little income but are honest about it, will close or go cash.
It repeals a costly new 1099 tax paperwork mandate embedded in the health care law.
Why not just repeal Obamacare entirely? Because to do that, members of congress and others would lost their cadillac plans? Bet even the pubbies won’t repeal the whole thing. Gotta save the bennies for themselves.
Why is no one talking about this?
Why is no one talking about this?
Because congress and senate are exempt from laws passed for the people,they get a free ride on almost everything they do.Why do you think the run for office,that’s why they need to be voted out after one term no matter what party.
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