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| Economy |
| Costly IRS Mandate Slipped into Health Bill |
| 2010-05-05 |
| Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly. A few wording changes to the tax code's section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare. Under current law, businesses are required to issue 1099s in a limited set of situations, such as when paying outside consultants. The health care bill includes a vast expansion in this information reporting requirement in an attempt to raise revenue for an increasingly rapacious Congress. |
| Posted by:Beavis |
| #8 I believe this is part of a stealth implementation of a VAT. This will not be an immense burden on business. In fact it will make life easier. In the past companies had to decide whether a vendor is or is not a 1099 vendor at vendor set up. Now all vendors will be 1099'd. The hassle will be obtaining and entering the EINs, but after that is done, the problem will lie with the IRS which will receive and have to process the 1099s. Send them in paper, not electronically. And send in your tax return handwritten with amounts to the cent. |
| Posted by: Nimble Spemble 2010-05-05 14:47 |
| #7 how many IRS personnel 17,000 |
| Posted by: ed 2010-05-05 14:10 |
| #6 I have my 'screen magnifier' already, Abu. Probably because I'm getting older, though. |
| Posted by: Mullah Richard 2010-05-05 14:03 |
| #5 i see this as a new 'jobs program' think how many IRS personnel will be needed to verify the forms. Business will hire additional workers to comply with filing all these forms. almost like something out of the movie Brazil |
| Posted by: abu do you love 2010-05-05 13:15 |
| #4 "the term "payments" includes gross proceeds paid in consideration for property or services" If I read this correctly, required then for: Rent, Utilities (Electrical & Nat. Gas), Fees (Storm-water, Sewer, Garbage Collection, etc.), Municipal/County/Township Taxes for 'Services', Fire Protection Inspections, Elevator Inspections, Snow-Plowing (where we are anyway), LP/Fuel Oil Refills, yadda-yadda-yadda. All would be considered 'payees'. Jeez-Louise! |
| Posted by: Mullah Richard 2010-05-05 13:10 |
| #3 Maybe they'll read the bill next time.... Nah. |
| Posted by: DarthVader 2010-05-05 11:28 |
| #2 If the Republicans do not win enouhg seats and roll this back in the Fall, then revolution is coming. People are going to die, especially politicians that imposed this, if that happens. |
| Posted by: No I am the other Beldar 2010-05-05 09:53 |
| #1 I'm stunned that there wasn't a broader debate before such a costly mandate was enacted. Stunned I tell you, STUNNED! |
| Posted by: Besoeker 2010-05-05 09:41 |