In a previous blog post, I showed a cartoon joking about Obamacare as a Trojan Horse for the IRS, but with each passing day we are learning new – and always unpleasant – details about the mammoth legislation that was imposed by the left. The excerpt below from the Boston Globe reveals that businesses will face costly new reporting requirements to the internal revenue service because of government-run healthcare:
Tucked away in just 23 lines of Section 9006 of the Healthcare reform bill be a dramatic change in the 1099 reporting requirements. No longer will corporations or payments for merchandise be exempt 1099 reporting. This new law is effective January 1, 2012. A large majority of payments made by a business will now be reported on a 1099. …There is no doubt this will be an administrative nightmare for many businesses in the first year or two. Taxpayer identification numbers need to be collected for all vendors. Have a large business related meal at a restaurant, this will need to be reported on a 1099. Spend a week in a hotel in Waco Texas, you will need to send a 1099.
My Cato colleague has more details in one of his recent blog posts.
[…] 22, 2010 by Dan Mitchell We’ve looked at this issue before, but this new CNN article fleshes out the awful IRS rules in the new healthcare […]
[…] 26, 2010 by Dan Mitchell 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 […]
[…] you may remember that the IRS is going to be a chief enforcer of Obamacare. Well, our friends at the tax collection agency have just released a draft form for the […]
[…] you may remember that the IRS is going to be a chief enforcer of Obamacare. Well, our friends at the tax collection agency have just released a draft form for the “credit […]
[…] have required businesses to collect tax identification numbers for just about any vendor and then send paperwork to the IRS whenever they did more than $600 of business. o Send one of your sales people to New York for a couple of nights? They would have to get the […]
[…] 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 and then send paperwork to the IRS whenever they did more than $600 of business. […]
[…] 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 and then send paperwork to the IRS whenever they did more than $600 of business. […]