Posted on 07/21/2010 4:55:08 AM PDT by EBH
The 1099 is a catch-all series of IRS documents used to report non-wage income from a variety of sources like contract work, dividends, earned interest and pension distributions. The new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards. Starting in 2011, financial firms that process credit or debit card payments will be required to send their clients, and the IRS, an annual form documenting the year's transactions.
Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to -- even if it's a giant retailer like Staples or Best Buy -- at the time of the transaction, or else facing IRS penalties.
"Just with business travel it would include hotels, rental cars," Henschke says. "Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day."
(Excerpt) Read more at money.cnn.com ...
Yet another reason why wallets, purses, and business investment accounts are snapping shut all across America.
Has Sharia Law (Mu’amlat) been written into this new Finance Bill?
I see an increase in barter transactions in the nation’s future.”
Met a lady on a flight recently who was returning from a huge convention in NOLA of just such a group which is national and quite well organized. Calls to memory a statement by Angle in Nevada re trading a chicken in order to pay for health care by your doctor. Reid and the Democrats laughed at the mere idea of this but barterers are becoming a force to be dealt with and one of the many solutions to the regs forced on us by the government.
Here is the hitch...The uproar will be..”All that paperwork” to fill out...and congress already has the solution...replace the 1099K with the VAT tax..the 1099K is just the decoy
As the owner of a small trucking company, I cannot imagine all the businesses across the country I will have to send 1099’s to, not to mention the W9’s I’ll have to keep on file.
If my deductions are no longer allowed with merely a canceled check or receipt and no 1099, my taxes are going to increase significantly.
Before trucking deregulation, renegades were rampant. Do not underestimate American enterprise.
Once you have businesses used to reporting every single transaction amongst themselves, it’s quite simple to say “now send us XX% as a VAT tax”.
This is simply paving the way for a VAT - business-to-business taxation that the consumer will never see, other than increased costs of product.
A fair tax is a VAT tax. How do you assume the IRS goes away with a fair tax? I hate that word ‘fair’ because the Leftists have so mis-used it.
How do you know that if a fair tax isn’t enacted that it won’t be changed like income tax was?
Co-opted by Cloward-Priven.
Consolidation of suppliers will be one result.
Please stop the fair tax stuff. We’d all love it, but it’s not going to happen. There are embedded industries that count on the Tax Code’s chaos. Washington need a good dose of Worm Medicine first.
Obama’s solution to the unemployment problem (since the IRS will have to hire at least 200,000 people to keep up with this paperwork)
Easier to control businesses once every thing is consolidated. Less competition too.
“These folks are doing their paperwork in the evenings and on the weekends already,” he says. “This certainly adds to the burden substantially.”
And all the while we work our butts off to pay the SOBs in government more than we can make ourselves. They are not at risk at all and stand there with their damn hands out ready to take the earnings we generate by putting our dollars and health at risk.
Just how far do things have to go to reach a tipping point? When do we reach enough and run them out of town on a rail? For example, the supt of schools in Helena, Mt. Were I a parent at the meeting where he is mouthing off about what he thinks a kindergartner should know about sex I don’t think I could have been stopped from strangling the pin headed bastard. There were more than 400 parents there who demonstrated inhuman restraint.
People who wield power should remember that the laws of human decency will only protect them for so long.
Unless the 16th amendment is repealed the IRS will remain and any alternative tax structure will be imposed in addition to the income tax.
Not to mention the gnashing of teeth that will result over "destroying all of those jobs" at IRS
Dumb? Or an insidious attempt to destroy small business?
This is going to be a major problem, reconsolidaing all those 1099s. What happens to a company when the 1099s returned show dollars greater then the company's revenue? How will a company figure out who filed incorrect 1099s? The 1099s covered by the company's internal credit will be easy to match up, but credit cards and cash sales are going to be a nightmare. This new law will increase the cost of doing business which will be passed along to the consumer.
I think we should have a Truth in Taxing Law. All purchases should break out on separate lines each and every tax on the supplier of the goods. That would now include the new Obamacare Tax. The purchaser could see the true cost of all the taxes paid. Like my phone service bill, where the taxes and other required government fees exceed the cost of the basic phone service.
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