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1099 will end the world in 2012

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Re: 1099 will end the world in 2012

#101

Post by madair »

_delirium wrote: post #47
DanielBMarkham wrote: post #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 b…

Man, talk about hyperbole. This is probably a terrible idea economically, but it's hardly a Nineteen Eighty-Four scenario. It's not becoming illegal to say "the IRS sucks", the IRS will not have cameras in your house looking for the slightest sign of dissent, and it'll actually be nearly impossible to get imprisoned for anything at all (tax penalties are generally merely more taxes, unless you deliberately lie). Also…

When everyone is a lawbreaker enforcement becomes selective, you could say arbitrary.

Re: 1099 will end the world in 2012

#102

Post by InclinedPlane »

jcnnghm wrote: 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.

More likely: most businesses will completely ignore this rule. It will either go away before it comes into force or it will be so impractical to police that it will be useless.

Re: 1099 will end the world in 2012

#103

Post by Retric »

walkon wrote: post #95
Retric wrote: post #89

Earlier quoted context omitted.

This does not apply to transaction made with a credit card so I don't think Office Depot is going to notice.

You're saying there are no customers of Office Depot that make a total of $600 in purchases in a given year with means of payment other than a credit card (e.g. cash, purchase order, or check)? Seems quite unlikely.

Sure there is some, but it's impact is going to be far less than a 1% tax increase on them. Especially when most small business start using CC to avoid the hassle and or simply ignore the issue.

Edit: Thanks for the down vote, but as a practical matter the IRS is going to use this as an audit trail. So a company needs to report revenue > the submitted 1099's. While they will get some 1099's their reported gross income is going to be dominated by people who don't need to send 1099's so it's going to have minimal impact. Note: There is zero new tax implications, it’s simply a reporting issue so being sent 1099’s DOES NOT IMPACT the taxes they pay.

The people receiving 1099's that are going to suffer are those who try and hide income. Companies are going to need to report revenue > 1099's or the IRS can easily find issue based on that discrepancy.

On the other hand Apple is going to need to send a lot of 1099's out to developers.

Re: 1099 will end the world in 2012

#106

Post by terrellm »

whyenot wrote: post #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…

Here's an article at CNN Money if that helps.

http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood...

Re: 1099 will end the world in 2012

#107

Post by Calamitous »

korch wrote: post #84

Theoretically, an Age of Bureaucracy can last until a paper shortage develops, but, in practice, it never lasts longer than 73 permutations. — Adam Weishaupt — Robert Anton Wilson, The Illuminatus! Trilogy I say great, bring it on! The sooner we Immanentize the Eschaton, the better! Fiction aside, I predict this law will get repealed pretty quickly and quietly before it goes into effect. The amount of added annual ta…

> I predict this law will get repealed pretty quickly and quietly before it goes into effect.

> They already went through this process with SOX

Has SOX been repealed, then? I know of at least two businesses it's prevented from an IPO.

It only makes sense to repeal if the gov't motive is to maximize revenue. As we've seen repeatedly, "duty" is not a concept that impacts career politicians in the slightest.

Re: 1099 will end the world in 2012

#108

Post by SkyMarshal »

The great injustice here as I see it is, Wall Street destroys the economy, makes billions doing it, passes the cost on to US Government via skilled use of FUD (especially the F part), capture, and paid-for access, and gets away clean (with a few show trials like Madoff).

Now the government is so cash strapped that they're looking to squeeze the rest of the country to make up for it. This appears to be the greatest reverse wealth transfer I've ever witnessed or even read about.

Re: 1099 will end the world in 2012

#109

Post by subwindow »

dschobel wrote: post #45
subwindow wrote: post #22

Earlier quoted context omitted.

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.

What is your basis for optimism?

Logic?

Re: 1099 will end the world in 2012

#110

Post by sp332 »

dantheman wrote: post #72
knowtheory wrote: post #55

Earlier quoted context omitted.

Then you haven't been paying attention to either health care in general, or the health care effort in specific. The health care bill was effectively implemented as a tax bill. The entire structure of the bill is a set of rules and initiatives set up to encourage businesses and individuals to get or provide health insurance through a series of tax raises and tax cuts. The tax code is the mechanism through which this p…

Of course it shouldn't have been implemented. If they were going to actually try to implement national health care it should be done as constitutional amendment.

If the Air Force wasn't a big enough deal to require an amendment, neither is health care.
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