We’ve looked at this issue before, but this new CNN article fleshes out the awful IRS rules in the new healthcare bill:
The massive expansion of requirements for businesses to file 1099 tax forms that was hidden in the 2,409-page health reform bill took many by surprise when it came to light last month. …The result: A blizzard of new tax forms that the Internal Revenue Service will begin rolling out next year. …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. …The 1099 changes attached to the health care reform bill are another kettle of fish. These massively expand the requirements for filing the “1099-Misc” form, which companies use for recording payments to freelance workers and other individual service providers. Until now, payments to corporations have been exempt from 1099 rules, as have payments for the purchase of goods. 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. …SMC’s survey found that extending 1099s just to services purchased from corporations would push that number to at least 200 filings per year for a typical small business — adding an estimated $6,000 to the cost of preparing the average tax return. And that’s without even accounting for the requirement that 1099s be filed for purchases of goods, a provision that Henschke’s group didn’t see coming when it conducted its survey last year. “These folks are doing their paperwork in the evenings and on the weekends already,” he says. “This certainly adds to the burden substantially.”
[…] Lawmakers did repeal one of Obamacare’s tax provisions, a 1099 reporting rule that would have buried everyone under a blizzard of paperwork (here’s the cartoon version of that issue). And the Democratic-controlled Senate recently […]
[…] Lawmakers did repeal one of Obamacare’s tax provisions, a 1099 reporting rule that would have buried everyone under a blizzard of paperwork (here’s the cartoon version of that issue). And the Democratic-controlled Senate recently voted […]
[…] Lawmakers did repeal one of Obamacare’s tax provisions, a 1099 reporting rule that would have buried everyone under a blizzard of paperwork (here’s the cartoon version of that issue). And the Democratic-controlled Senate recently […]
[…] of the tax increases buried in Obamacare was an onerous and intrusive “1099″ scheme that would have required businesses to collect tax identification numbers for just about any vendor […]
[…] of the tax increases buried in Obamacare was an onerous and intrusive “1099″ scheme that would have required businesses to collect tax identification numbers for just about any vendor […]
[…] of the tax increases buried in Obamacare was an onerous and intrusive “1099″ scheme that would have required businesses to collect tax identification numbers for just about any vendor […]
[…] 20, 2011 by Dan Mitchell One of the tax increases buried in Obamacare was an onerous and intrusive “1099″ scheme that would have required businesses to collect tax identification numbers for just about any vendor […]
[…] you may remember that the IRS is going to be a chief enforcer of Obamacare. Well, our friends at the tax collection […]
[…] you may remember that the IRS is going to be a chief enforcer of Obamacare. Well, our friends at the tax collection […]
One more thing I would like to say.
This stupid law should not apply to businesses that have had there taxes prepared by an accountant! My accountant sees every receipt I have. That should be enough!
This is going to put me out of business.
I am recently widowed and now am a sole
owner of our business. I hate paperwork,
so I am paying a accountant to do most of
it for me.
I am fearful of the state of the union. My Husband
was a Marine and he was sorry for the state of
our country for years, before his untimely death.
He used to coin a phrase that he had heard years
before, ” the people are sheaple”. Too many Americans
are ignorant. Products of public education. My Husband
and I, scrimped and saved to send our 5 children to a Christian school for their education. Even if a teacher [wants] to teach children the right stuff, they are prevented from doing so, because they are given a curriculum to teach…they much not deviate.
I hate the way that laws are SNUCK in to legislation.
IT’S EVIL!
No wonder Pelosi and her chump slaves used Clintonomics to get it through the Senate. November….. Come Quickly!