Good job Obama. Way to stick it to the little man! Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010 click link for more.
This change is absolutely terrible and stupid. Unlike the 1099 K expansion this provision will do nothing to reduce the tax gap.
Does this have anything to do with the amount of what your employer would pay for your healthcare being tacked onto your earnings? Its gonna suck to actually earn X but have to pay taxes on Y. Thanks obamacare.
From what I understand they won't be after 2012. I could be wrong but it is something I can see those sneaky bastids doing.
Won't this cut down on fraudulent deductions? It should also generate additional tax revenue for unreported services and income that sometimes fall between the cracks. I wonder how many millions of dollars the Fed loses because of this every year? What's the burden on small business? Mailing more paperwork? Isn't there software that handles this? Is there anything that you people won't complain about? Anytime tax revenue increases without raising taxes I'm pretty happy.
That would equate to the single biggest tax increase in American history. It was not part of the legislation. You may be confusing it with excise tax on Cadilac plans. Do you realize what you are saying? The threshold is set so ridiculously low that hundreds of millions, if not billions additional 1099s will have to be completed, mailed, processed, and reviewed. This is going to require hundreds if not thousands more IRS auditors. Small businesses are going to have to need massive upgrades to their systems or many additional employees to process this manually. They will have to reconcile sales to 1099s in a meticulous manner. Costs will increase, and so will prices of goods. Here is an example. I buy and sell vintage toys on ebay. My annual sales hover around 12,000. My costs ov inventory are about 2,000. I spend 600 bucks annually at Goodwill, and a few thrift stores around town. Now I will have to send these entities 1099s. Why should it be my responsibility that they report their income properly? This will cost more than it will take in for the government. The extra costs to businesses will result in higher prices for you and me. It is an example of spending thousands to save pennies. So if massive inefficiencies make you happy...
I will check with who I heard this from to confirm and see if it is legit or more black helicopter Alex Jones type stuff. I can certianly see them doing it. You have to remember who we are talking about here. Look at how the 1099 thing alone is going to grow the government.
Why? Not every tax return is audited. The ones that are audited will require more work. Businesses that are prepared for an audit should have this stuff in order in advance. I guess they could do it that way, but personally I would just buy QuickBooks. It's much cheaper than making massive upgrades and hiring additional employees. If you can't handle simple software like Quicken, then I question your business skills. Because the law says so? Also because you don't want your taxes increased and you are intelligent enough to realize that making sure that all taxable income is reported benefits you. Do you have anything other than your paranoia to support this?
