Stealth IRS changes mean millions of new tax forms

CNNMoney.com ^ | 05/21/2010 | Neil deMause

[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."

[EBH]

This is all pretty darn dumb.

[IbJensen]

It may appear dumb to us, but to the insidious, evil regime and the IRS it appears to be a stroke of genius!

Our evil, corrupt government marching along the road to America’s destruction by paperwork.

[macquire]

“mainstream” media just picking up on this?

Maybe they were on vacation...

[winodog]

The bureacracy must grow so ignorant, dimwitted, dishonest, and incompetent people with lame degrees can have a super great job making tons of money stolen by force from productive people.

[IbJensen]

You nailed it!

[Truth29]

Semi sarcastic response: Close down your small business due to the ever increasing regulatory and tax burdens and go on the public dole. All off these requirements add burden after burden until the camel's back finally breaks.

[sauropod]

Insane is more like it.

[Man50D]

One and possibly the only way to effectively thwart the IRS is by supporting passage of The Fair Tax Act(HR25/S296). The Fair Tax(not a VAT) will replace all federal income taxes with a national sales tax and abolish the IRS! Fair Tax ping!

[Pecos]

Somehow, just somehow, I see an increase in barter transactions in the nation’s future.

[CaptainAmiigaf]

NOT at all sarcastic. Me...tiny business, watch repair. Have 6 suppliers, rotating purchases and some specialize. Write a check and/or “on line”. Once a month while I have a cup of coffee.
Need for IRS forms for EACH ONE. Like hell. 5 companies lose a customer and I avoid another government stupidity.
Wait till the disaster this will cause. You’ve seen nothing yet.

[sport]

It has a purpose. These people are far from dumb. They are evil and smart. It is the people that put them in power that are bumd.

[VRWCTexan]

Precisely what I am doing after being self-employed in small business since April 1986...

Taking Uncle Sam’s Social Security after paying in for 46 years - I figure it’s “my money”...

I finally had to give up hiring others direct or contract - a few years back - the gov’t made that all too difficult

They are killing off / choking to death the small business engine

[bossmechanic]

Going Galt

[Condor51]

The federal government loses an estimated $300 billion each year from the "tax gap" between what individuals and businesses owe and what they actually pay.

I'm pretty sure there's a mistake there? Lemme check ...... yep. Found it:

The federal government thinks it loses an estimated $300 billion each year from the "tax gap" between what the IRS thinks individuals and businesses owe and what the IRS thinks they should actually pay.

There. That's better.

ps: My 'posting' 1099-K to follow
...............

[SpaceBar]

There is a common misconception that slaves are always cognizant of their predicament.

[EBH]

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.

There is nothing that is going to go undocumented. We are going to be paying big time for lots of our perceived conveniences.

[Jack Hydrazine]

NO FAIR TAX! FLAT TAX ONLY!

[jetson]

Everyone will have to comply except Mexicans.

[6SJ7]

The idiot Colonial Government use to apply a glass tax. The result was colonial houses were often constructed with absurdly small windows.

This tax will really help drive down the current 'vibrant' economy. < sarc, as if you didn't know>

[exDemMom]

I know the arguments for it, but I’m against the “Fair Tax” for the simple reason that politicians would use it to hide all kinds of taxes, until you’re paying more for tax than you pay for the actual product. This is the case with gas taxes—when people pay $2.50 for gas, they think most of it goes to the oil companies, when the fact is that the tax can be half the price or more, depending on the state. I’ve no doubt that a “fair tax” system would tack on all kinds of hidden taxes, so that people would have no idea how much they are actually paying in taxes.

I’d like to see a flat tax—one rate across the board, with a few simple deductions, so that people can figure out their own taxes and see exactly how much they fork over.