Tuesday, April 27, 2010

Pass the Bill to Find Out What's in It

Another provision that was stuck into the Obamacare legislation:

"Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS."

Read the whole thing, especially if you own a business. If you buy $600 or more of bottled water, office supplies, a new refrigerator, a new roof--you have to send out a 1099. Surprise!

(Hat tip: The Corner)

3 comments:

  1. I saw this. This makes all commerce in the United States impossible. If this provision is allowed to stand, business will slam to a halt and productivity in this country cease. The time required simply to process all the 1099s by businesses, not to mention the manpower required to match them at the IRS is ludicrous to even consider. What a lulu.

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  2. now is this just any business you do, or is this like a paycheck, because I get 1099's from several people when I do presentations to youth groups, and schools and such if it's over $600.00 already.

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  3. This is WAY more than that. Corporations have never received 1099s. Beginning in 2011 if a business does ANY business with ANY vendor that amounts to over $600 in one year, they have to send them a 1099. If your business buys more than $600 worth of office supplies from Staples -- you have to send them a 1099. Used car? Send 'em a 1099. Gas for your car? 1099. We're talking BILLIONS of forms. Businesses will have to get the taxpayer ID numbers of all their vendors as well as their addresses. If vendors won't give that information, you have to withhold tax from what you pay them. All in all, it's a bureaucratic nightmare.

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