As mentioned before in this blog, hidden in the health care legislation is a new IRS requirement that will result in a massive paperwork increase for every business in the country. It will cost thousands of dollars and countless hours to comply with this new requirement to report 1099’s for all transactions over $600. Hundreds, maybe thousands of transactions will have to be monitored and reported.
CNN Money.com reports:
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.
In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction.
“Just with business travel it would include hotels, rental cars,” Henschke says. “Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day.”
The IRS jackboots are clicking louder and louder on the cobblestones. These fine folks will monitor and be in charge of your every transaction. They will have to monitor your life so as to direct your health care — have you purchased your Obamacare policy? If not, go to jail. Did you fail to report income from the sale of your lawn mower? Go to jail. Did you fail to submit a 1099 for the independent guy who paved your driveway? Go to Jail. Did your business fail to submit its 1099’s on time? Pay a fine and go to Jail.
This abomination needs to be killed PDQ or we’ll all have to spend our entire lives filling out forms for our socialist government to torment us with. And maybe the Sun God can explain why he had to hide this monster in the health bill.