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1099 will end the world in 2012

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Re: 1099 will end the world in 2012

#21
[warning. rant head]

This has to be the most mind-numbingly stupid thing I have seen the government do in the last couple of decades -- and that includes bad wars, if that's your thing.

Why can it be so bad? Because it screws with every single economic entity in the nation, in a way that pervasive, subtle, and micro-managing.

If you want to know where "1984" is, with Big Brother watching all of your moves, it's not bullshit programs like TIA. It's making you rat out the guy who is on disability but mows lawns on the side, or the guy who paints houses at nights without reporting the income so he can send his kid to school. Or the mom that babysits kids so that she can stay home.

Yes. These people are law-breakers. In a web of such complexity that 80% of IRS's own employees can't answer sample tax questions, we are all law-breakers. But this takes tax collection to a new low -- now I am going to be responsible for "double-checking" on my neighbor who sold me those used lawn mowers last year. I need to do my part to make sure he's reporting everything.

It is so outrageously stupid and infuriating that I still can't believe it is true. I'm beside myself. So if I eat at Burger King during the week when I travel, about the 120th time I buy a burger, I need to chalk them up for a 1099.

It's the worst thing for small businesses and the underground economy that I've ever heard of the government doing. It just can't be true.

ADD: And don't get me started with some bullshit about how the agency hasn't decided yet how to enforce it. This is like saying the Congress voted to install cameras in everybody's homes, but that might not be so bad because the administrative work hasn't been done to decide who exactly gets a camera and when. As if this somehow mitigates things.

Also, for all of you folks down-voting me. Tell me I am wrong. I'm not a tax professional and I don't read the political spin sites. The only reason I've commented now is that this is the 3rd or 4th time I've seen this posted on HN. So please. I would love to be wrong about this.

Re: 1099 will end the world in 2012

#22
post #7

This can't generate remotely enough revenue to offset the compliance cost to the business sector. This is nothing more than a Federal jobs program at the expense of the private sector.

Wow. Jump to conclusions without evidence? Sign me up!

More likely it was an attempt to close a perceived tax loophole without understanding of the cost of compliance. I have no doubt it will get fixed before it actually goes into effect.

Re: 1099 will end the world in 2012

#23
post #14

This will be an unmitigated disaster. Office Depot will get 50 million or so 1099's. How do you deal with that many accounting discrepancies? How do you match that many transactions to all those forms. What about under and over-reporting? This is a Democrat clusterfuck if there ever was one.

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Re: 1099 will end the world in 2012

#24
post #7

This can't generate remotely enough revenue to offset the compliance cost to the business sector. This is nothing more than a Federal jobs program at the expense of the private sector.

Part of what they are doing is getting the system ready to put a sales tax on services. That will generate some serious revenue (or provide another effective mechanism to steal money from some people to give to other people, depending on your perspective.)

Re: 1099 will end the world in 2012

#25
post #9

Anyone know why this was put into the bill? What good intentioned upside someone is trying to accomplish? Are cell phone companies going to issue 1099s to most of America, and all users have to do the same?

Anyone know why this was put into the bill? What good intentioned upside someone is trying to accomplish?

To make sure that retailers/sellers are accurately reporting their sales and not lowballing their revenue numbers on their tax returns. It's basically to reduce tax fraud with the hope that the extra tax income (which is assumed that corps or fraudulently not paying) can be used to pay for health care without having to add additional taxes.

Re: 1099 will end the world in 2012

#27
Next time link to the original article, which is here: http://www.chcchoices.org/Article/28083/Consumer_Power_Repor...

In this case the report was produced by the Hearland Institute which Wikipedia describes as "an American conservative public policy think tank based in Chicago, Illinois that advocates free market policies."

Based on some of the bullshit they have published when it comes to global warming, they seem to be more interested in pursuing a political agenda than sticking to the facts.

"Most scientists do not believe human activities threaten to disrupt the Earth's climate."

"The most reliable temperature data show no global warming trend."

"A modest amount of global warming, should it occur, would be beneficial to the natural world and to human civilization."

"The best strategy to pursue is one of 'no regrets'."

Re: 1099 will end the world in 2012

#28
I am a little concerned about this. While I do some consulting work for large companies and we do 1099s anyway, I also do a lot of very small projects (mostly helping other developers get started or get up to speed on something I know more about than they do). For these little jobs that are paid for via PayPal, now small customers need to do a 1099 with me - a hassle for them probably means not as many little 1 week jobs.

Also, as a consumer of goods and services, now I need to do a 1099 for Amazon, people I hire for small bits of work, the local electronics store, etc.?

Re: 1099 will end the world in 2012

#29

The good news is that purchases made with a credit or debit card will be exempt from this requirement. However this requirement is still likely to be a huge pain for me at least because I use PayPal for a lot of vendors for totral purchases over $600 in a year. The IRS is accepting comments on this requirement at http://www.irs.gov/newsroom/article/0,,id=225029,00.html

[deleted]
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