Tucked away in the 2,300 page bill, in section 9006, is a provision that expands the scope of the Internal Revenue Service (IRS) Form 1099. Beginning Jan. 1, 2012, a Form 1099 will have to be filed to report to the IRS the purchase of all goods and services by small business and self-employed people that exceed $600 during a calendar year.Note that it's not a specific restriction on gold coins or bullion, but dealers in those commodities are saying they will be hardest hit.
This is an onerous bookkeeping nightmare for all small businesses. But precious metals dealers will really take a hit.
“Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public,” Diane Piret, industry affairs director for the Council for Tangible Assets, told ABC News. “Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale.”
Fact is, practically all businesses and self-employed people will be hit by this horrific mess.
Absolutely! This 1099 thing has to go.
My comment to the wife immediately upon hearing of it was, “It is no accident that the $600 threshold for 1099 is conveniently well below the price of an ounce of gold and will be for a long, LONG time.”