Get ready to send out a LOT more 1099s (loan, collection, small business)

[sterlinggirl]

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.

Stealth IRS campaign mandates millions of new 1099 tax forms - May. 21, 2010

Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010

[wanneroo]

I think we can find a simpler tax system that weeds out the IRS.

There is a lot of anger out there about the government intruding into our lives and I think it will reach a tipping point.

If you sit back and think logically about it, do we as people need to justify every expenditure in our lives and have everything tracked and noted to some pompous bureaucracy???

[FHA Loan]

I thought if a business paid someone $600 or more, they already had to send out a 1099... What about this has changed?

[Philip T]

Originally Posted by FHA Loan

I thought if a business paid someone $600 or more, they already had to send out a 1099... What about this has changed?

Per the OP, It will include payments to Corporations.

If you look at the present very detailed and extensive list -- it does not presently include Corporations.

[sterlinggirl]

Originally Posted by FHA Loan

I thought if a business paid someone $600 or more, they already had to send out a 1099... What about this has changed?

The biggest change will be that you'll have to send a 1099 for purchases as well as services. If you buy over $600 in gas during the year, you'll need to send one to your gas station. If you buy $600 worth of paint for a rental unit, you'll have to send one to Home Depot.

Even worse, it looks like when you buy a used car from an individual for your business, you'll have to demand the seller's social security number and send them a 1099 as well.

[Compression]

I expect to see a resurgence in the barter system soon.

After the inevitable inflation takes hold, along with the new batch of taxes and fees, and draconian accounting and collection tactics, we will indeed be little more than slaves.

Barter will be the only method of survival for many.

YC.......

[las vegas drunk]

It sounds like a plan to put small businesses out of business.

[user_id]

Originally Posted by las vegas drunk

It sounds like a plan to put small businesses out of business.

Its a plan to get businesses to pay their fair share of taxes as a result it will be a big burden to those that aren't paying their fair share.

If this actually happens its going to be annoying, but I can't imagine it taking more than 4~12 hours for a small business to file all these stupid things. All the information should be readily available from your books.

But it would be much better just to completely redo the tax system. Let's get rid of all productivity taxes and only tax passive capital gains and property. These taxes are rather difficult to avoid.

[killer2021]

All I can say is: Thank god I studied accounting in college.

Cha ching

[Nor'Eastah]

Nobody has asked the obvious question: what's this doing in a healthcare bill???

Just one more peice of evidence that the bill is not, and never was, about healthcare.