Posted on 09/30/2010 12:46:14 PM PDT by bbernard
(CNSNews.com) – Millions of Americans who own rental property are in for a bit of a rude awakening, beginning in January.
Congress has presented a bill to President Obama that would expand the IRS Form 1099 reporting requirements set out in the health-care reform law to include private citizens who own rental property.
The Patient Protection and Affordable Care Act, President Obama’s health care law, requires that small businesses file a Form 1099-MISC with the IRS for any goods they purchase from an outside vendor valued at over $600.
But the new bill, the Small Business Jobs and Credit Act (H.R. 5297), extends the mandate to private individuals who own property from which they receive rental income. Those people would also now have to fill out paperwork reporting any expenditure they make on that property valued over $600 for the year.
Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”
(Excerpt) Read more at cnsnews.com ...
This is bizarro world. My expenses on a rental house that exceed 600 per year are for mortgage, taxes, utilities and insurance - all big entities. The little guys who mow my lawn and occasionally do plumbing do not exceed the $600 threshold. Thus, I’ll be sending 1099’s to those who already report all their income and the income by the small guys, who they really want to capture, will not be reported. Really stupid and really burdensome.
This $600 1099 craze is just setting up the up and coming VAT.
“Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”
actually, that’s an improvement over us evil landlords receiving “unearned income”
but I don’t get this - we already have to be prepared to document every expenditure on the property to claim it as an expense
I got this e-mail today. Anyone know if it is true?
2011 W-2 Tax Forms and Obamacare
If this doesn’t get to you, then check your pulse. You may be a flat line...
Should you want to verify this, go to http://www.thomas.gov/, enter “HR 3590”
in the search box and look for “CRS Summaries.” This is what you’ll find.
Title IX Revenue Provisions—Subtitle A: Revenue Offset
“(Sec. 9002) Requires employers to include in the W-2 form of each employee
the aggregate cost of applicable employer-sponsored group health coverage
that is excludable from the employee’s gross income (excluding the value of
contributions to flexible spending arrangements).”
Starting in 2011—next year—the W-2 tax form sent by your employer will be
increased to show the value of whatever health insurance you are provided.
It doesn’t matter if you’re retired. Your gross income WILL go up by the amount
of insurance your employer paid for. So you’ll be required to pay taxes on a larger
sum of money that you actually received. Take the tax form you just finished for
2009 and see what $15,000.00 or $20,000.00 additional gross income does to
your tax debt.
That’s what you’ll pay next year. For many it puts you into a
much higher bracket. This is how the government is going to buy insurance for
fifteen (15) percent that don’t have insurance and it’s only part of the tax increases,
but it’s not really a “tax increase” as such, it a redefinition of your taxable income.
Also, go to Kiplinger’s and read about the thirteen (13) tax changes for 2010 that
could affect you.
Why am I sending you this? The same reason I hope you forward this to every
single person in your address book. People have the right to know the truth because
an election is coming in November. So vote intelligently, based on your values.
But also adjust your tax withholding, or increase your savings, so that you aren’t
surprised and put in a jam when your federal income taxes are due on April 15, 2012.
Fight organized crime!
==========================================the provisions I found are listed below
that I found relative to the above email. Diana K.
Title IX: Revenue Provisions - Subtitle A: Revenue Offset Provisions - (Sec. 9001, as modified by section 10901) Amends the Internal Revenue Code to impose an excise tax of 40% of the excess benefit from certain high cost employer-sponsored health coverage. Deems any amount which exceeds payment of $8,500 for an employee self-only coverage plan and $23,000 for employees with other than self-only coverage (family plans) as an excess benefit. Increases such amounts for certain retirees and employees who are engaged in high-risk professions (e.g., law enforcement officers, emergency medical first responders, or longshore workers). Imposes a penalty on employers and coverage providers for failure to calculate the proper amount of an excess benefit.
(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee’s gross income (excluding the value of contributions to flexible spending arrangements).
(Sec. 9003) Restricts payments from health savings accounts, medical savings accounts, and health flexible spending arrangements for medications to prescription drugs or insulin.
(Sec. 9004) Increases to 20% the penalty for distributions from a health savings account or Archer medical savings account not used for qualified medical expenses.
(Sec. 9005, as modified by section 10902) Limits annual salary reduction contributions by an employee to a health flexible spending arrangement under a cafeteria plan to $2,500. Allows an annual inflation adjustment to such amount after 2011.
(Sec. 9006) Applies to corporations reporting requirements for payments of $600 or more to persons engaged in a trade or business.
(Sec. 9007, as modified by section 10903) Requires tax-exempt charitable hospitals to: (1) conduct a community health needs assessment every two years; (2) adopt a written financial assistance policy for patients who require financial assistance for hospital care; and (3) refrain from taking extraordinary collection actions against a patient until the hospital has made reasonable efforts to determine whether the patient is eligible for financial assistance. Imposes a penalty tax on hospitals who fail to comply with the requirements of this Act.
Requires the Secretary of the Treasury to report to Congress on information with respect to private tax-exempt, taxable, and government-owned hospitals regarding levels of charity care provided, bad debt expenses, unreimbursed costs, and costs for community benefit activities.
(Sec. 9008) Imposes an annual fee on the branded prescription drug sales exceeding $5 million of manufacturers and importers of such drugs beginning in 2010. Requires the HHS, VA, and DOD Secretaries to report to the Secretary of the Treasury on the total branded prescription drug sales within government programs within their departments.
(Sec. 9009, as modified by section 10904) Imposes an annual fee on the gross sales receipts exceeding $5 million of manufacturers and importers of certain medical devices beginning in 2011.
(Sec. 9010, as modified by section 10905) Imposes on any entity that provides health insurance for any United States health risk an annual fee beginning in 2011. Defines “United States health risk” as the health risk of an individual who is a U.S. citizen or resident or is located in the United States with respect to the period the individual is so located. Exempts entities whose net premiums written are not more than $25 million. Requires all entities subject to such fee to report to the Secretary of the Treasury on their net written premiums and imposes a penalty for failure to report.
(Sec. 9011) Requires the VA Secretary to study and report to Congress by December 31, 2012, on the effect of fees assessed by this Act on the cost of medical care provided to veterans and on veterans’ access to medical devices and branded prescription drugs.
(Sec. 9012) Eliminates the tax deduction for expenses for determining the subsidy for employers who maintain prescription drug plans for Medicare Part D eligible retirees.
(Sec. 9013) Increases the adjusted gross income threshold for claiming the itemized deduction for medical expenses from 7.5% to 10% beginning after 2012. Retains the 7.5% threshold through 2016 for individual taxpayers who have attained age 65 before the close of an applicable taxable year.
(Sec. 9014) Imposes a limitation after December 31, 2012, of $500,000 on the deductibility of remuneration paid to officers, directors, employees, and service providers of health insurance issuers who derive at least 25% of their gross premiums from providing health insurance coverage that meets the minimum essential coverage requirements established by this Act.
(Sec. 9015, as modified by section 10906) Increases after December 31, 2012, the hospital insurance tax rate by .9% for individual taxpayers earning over $200,000 ($250,000 for married couples filing joint tax returns).
(Sec. 9016) Requires Blue Cross or Blue Shield organizations or other nonprofit organizations that provide health insurance to reimburse at least 85% of the cost of clinical services provided to their enrollees to be eligible for special tax benefits currently provided to such organizations.
Subtitle B: Other Provisions - (Sec. 9021) Excludes from gross income the value of certain health benefits provided to members of Indian tribes, including: (1) health services or benefits provided or purchased by IHS; (2) medical care provided by an Indian tribe or tribal organization to a member of an Indian tribe; (3) accident or health plan coverage provided by an Indian tribe or tribal organization for medical care to a member of an Indian tribe and dependents; and (4) any other medical care provided by an Indian tribe that supplements, replaces, or substitutes for federal programs.
(Sec. 9022) Establishes a new employee benefit cafeteria plan to be known as a Simple Cafeteria Plan, defined as a plan that: (1) is established and maintained by an employer with an average of 100 or fewer employees during a two-year period; (2) requires employers to make contributions or match employee contributions to the plan; and (3) requires participating employees to have at least 1,000 hours of service for the preceding plan year; and (4) allows such employees to elect any benefit available under the plan.
(Sec. 9023) Allows a 50% tax credit for investment in any qualifying therapeutic discovery project, defined as a project that is designed to: (1) treat or prevent diseases by conducting pre-clinical activities, clinical trials, and clinical studies, or carrying out research projects to approve new drugs or other biologic products; (2) diagnose diseases or conditions to determine molecular factors related to diseases or conditions; or (3) develop a product, process, or technology to further the delivery or administration of therapeutics. Directs the Secretary of the Treasury to award grants for 50% of the investment in 2009 or 2010 in such a project, in lieu of the tax credit.
-—— Original Message -——
In reality, the 1099’s reduce revenue. You only have to file a 1099 if you pay as a business expense. If I pay the plumbler to fix my business office I file a 1099. If I pay the plumber to fix the toilet in my house I don’t.
I do a return for a carpenter, and he gives me the 1099’s he receives but I know he does as much work for private individuals. The govt only knows about the 1099’s so that is the income reported...............
STUPID GOVERNMENT!
It is even more fun with the new IRS regulations for ‘enhanced’ 1099s. For the IRS instructions on how to file 1099s see http://www.irs.gov/pub/irs-pdf/p1220.pdf (138 pages).
Basically, the 1099-MISC forms that you submit to the IRS can no longer be hand-written. They must be optically readable by machine. You must call the IRS and ask to have shipped to you the special machine-readable forms. You must put only the special forms into your inkjet printer (PDF blanks not accepted). See IRS Pub 1220 (page 5) and the Form 1099 instructions (page 101).
The IRS penalty for unacceptable 1099s is $50 per item.
For states to calculate “use tax” bills from this will mean having to lump in shipping and handling fees as taxable items, a policy that only a few states have now in their tax codes. Also where different categories of items from the same vendor are mixed in an order (e.g. drugs and toiletries) these are presently taxed at different rates by many states. I can’t see tax bills resulting directly from this, but only tax audits.
Most people will probably e-file.
I will not comply
In the health care bill, all your credit card transactions will be reported to the federal govt. The federal govt will share this with the states and you will all receive an itemized listing of all the out of state purchases you made and a bill for the use/sales tax you didn’t pay................................... I suspect you will be billed for use tax for you contribution to FR.’
With all the ID theft world wide- this is another reason NOT to use your credit cards.
I am trying to slowly pay off my credit cards & do as much as possible with cash in the near future.
Your sensitive information will be in the hands of the workers who have given false/forged documents to the employer—either the Fed or the State.
how’s that hope and change workin for ya/
This is b*llshit!
Is it time yet????
Privacy Act and Paperwork Reduction Act Notice.
We ask for the information on these forms to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to figure and collect the right amount of tax.
Sections 170(f)(12),199, 220(h), 223, 408, 408A, 529, 530, 6039, 6041, 6041A, 6042, 6043, 6044, 6045, 6047, 6049, 6050A, 6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 6050T, 6050U and their regulations require you to file an information return with the IRS and furnish a statement to recipients. Section 6109 and its regulations require you to provide your TIN on what you file.
Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation, and to cities, states, and the District of Columbia for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. If you fail to provide this information in a timely manner, you may be subject to penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file the following forms will vary depending on individual circumstances. The estimated average times are:
1096 13 minutes
1098 7 minutes
1098-C* 18 minutes
1098-E 7 minutes
1098-T 13 minutes
1099-A 9 minutes
1099-B 20 minutes
1099-C 10 minutes
1099-CAP* 11 minutes
1099-DIV 18 minutes
1099-G 11 minutes
1099-H* 18 minutes
1099-INT 13 minutes
1099-LTC 13 minutes
1099-MISC 16 minutes
1099-OID 12 minutes
1099-PATR 15 minutes
1099-Q 11 minutes
1099-R 18 minutes
1099-S 8 minutes
1099-SA 8 minutes
3921* 11 minutes
3922* 12 minutes
5498 24 minutes
5498-ESA 7 minutes
5498-SA 10 minutes
W-2G 18 minutes
* Privacy Act does not pertain to this form.
If you have comments concerning the accuracy of these time estimates or suggestions for making these forms simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send these forms to this address. Instead, see part D on page 4.
_________________________________
Where does it state this? I believe you, I just want to read the particulars.
So with my 84 year old Father since he’s moved into a retirement assisted living complex and is renting his house to my Daughter for $900 a month, now has to fill out and file a 1099?
Those sorry DemonRATS!
The purpose of this 1099 is not to document your expense. It's to document the income for the person/business that you paid.
The IRS is going to match these 1099's against the income that is reported -- just like they do with W-2's.
The original requirement for this ridiculous bill required that total income of the taxpayer exceed $200,000. Does anyone know if this is still the case?
joy
Wouldn’t be an issue either way in the case of out of state purchases in California. The taxes already exist, they were just supposed to be self-reported before.
Humm, I just checked the link to IRS Pub 1220 and the rules have changed.
The old instructions (TY2009) required typewritten forms (Courier 12 pt font). The new instructions (TY2010) allow hand-written forms (1099 instructions section G).
I’m guessing this is anticipation of the new 1099 mandatory reporting law.
You still need to call the IRS 800 number to get the red Copy A forms and file them along with Form 1096.
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.