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hotel4dogs
11-12-2010, 09:34 AM
This is going to be a major pain in the keester.

http://blogs.reuters.com/deep-pocket/2010/10/20/1099-tax-rule-may-bring-big-pain-to-small-business/

Just think of the record keeping involved. Spend more than $600 on dog food in a year? You'll have to send the vendor a 1099. What about electricity? Supplies like bumpers etc.???

What will they come up with next? ! ?

david gibson
11-12-2010, 09:48 AM
<<<<<<<<<<<<<<
"Federal lawmakers have been looking for ways to close the “tax gap,” the more than $300 billion chasm between what Americans owe in taxes and what they actually pay. This provision was included in the health care legislation, one of more than a dozen revenue-raising measures in that bill. The Joint Committee on Taxation has estimated that it will bring in $17 billion in tax revenues over 10 years."
>>>>>>>>>>>>>>>


anyone surprised?

hotel4dogs
11-12-2010, 09:59 AM
surprised, no.
disgusted, yes.

Gerry Clinchy
11-12-2010, 02:00 PM
However, there are people who believe that the $ expended to comply with this regulation will cut considerably into the revenue it's supposed to generate. And I'm wondering if that even includes the money it costs the purchaser of products to generate this new mountain of documentation?

Maybe you won't have to give a 1099 to utility companies like electric & gas, but what about the oil company? the guy who supplies wood for your wood stove? the telephone company? your internet service provider? Staples for office supplies?

That is SUCH a stupid provision. Since our legislators aren't known for being so good with their own taxes, maybe it shouldn't be surprising?

BrianW
11-12-2010, 05:24 PM
What will they come up with next? ! ?

This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer. (http://www.quotationspage.com/quote/497.html)
Will Rogers

hotel4dogs
11-12-2010, 05:55 PM
The logistics are a nightmare. So now I have to keep track of every gas station where my business buys gas, and send a 1099 to each one if I spend over $600 in a year? SHEESH.

Gerry Clinchy
11-12-2010, 06:21 PM
Companies have always had to send 1099s to service/product providers to whom they paid over $600 during the year. Banks had to send 1099s for interest earned; dividends from stock as well. However, you did not have to send a 1099 to EVERY retail establishment from which you made purchases. The idea of having to send a 1099 to the plumber or electrician you need for home repairs is such a crock.

The thinking behind this is that some of the people who are getting income are "slipping through the cracks" and not paying taxes on all their income ... like that plumber or electrican or car repair shop, if you happen to pay them in cash.

So, now, not only are you responsible for voluntarily paying your own taxes, you are responsible for making sure other people pay theirs.

What happens when you sell a litter of puppies? Does each puppy buyer have to give you a 1099 as well? Do they have to do the same when they purchase a puppy from a pet shop?

Gerry Clinchy
11-13-2010, 05:29 PM
Good news on this part of the health legislation.
http://politics.blogs.foxnews.com/2010/11/12/key-democrat-moves-repeal-part-health-care-bill



A key Senate Democrat announced Friday that he would introduce legislation to repeal a provision in the recently-passed health care reform law that would eliminate an overly-burdensome reporting requirement for small businesses that might have left many drowning in paperwork.

Senate Finance Committee Chairman Max Baucus (http://www.foxnews.com/topics/politics/max-baucus.htm#r_src=ramp), D-Mont., released a statement saying, "I have heard small businesses loud and clear and I am responding to their concerns."

The Patient Protection and Affordable Care Act (PPACA) contains a provision designed to raise revenue without raising tax rates, that would, beginning in 2012, require all businesses to report payments to and purchases from any business totaling more than $600 in a calendar year, regardless of what the money was used to purchase.
QUOTE]

[QUOTE]The Baucus legislation would strip the requirement from the bill entirely, but it will also leave a major hole from the revenue lost. The nonpartisan Joint Tax Committee estimated that $19 billion could be expected over 10 years.


However, this +$19 billion did not include the cost of actually "processing" the requirement by the IRS, nor the cost for those required to file the 1099s

hotel4dogs
11-13-2010, 06:44 PM
now that's a bit of great news!!!

BrianW
11-14-2010, 10:17 AM
Senate Finance Committee Chairman Max Baucus (http://www.foxnews.com/topics/politics/max-baucus.htm#r_src=ramp), D-Mont., released a statement saying, "I have heard small businesses loud and clear and I am responding to their concerns."

What a joke! Baucus was one of the main architects in drafting this bill and NOW he's claims he's "heard... their concerns" by removing the 1099 provision. :rolleyes:
So he admits that he didn't care while he was shoving bad legislation down our throats in the rush to get "something" passed.

Do we really need any more reasons not to let Pelosi, Reid etc of the lame ducks advance the DREAM Act or any other bills?