"Health Care" Bill has new Tax Law - File 1099 for ALL Transactions $600 and Over

[abduLMaria]

It looks like the vampires are trying to create another way to such your blood.

http://www.cato-at-liberty.org/2010/04/ ... alth-bill/

"The 2010 Health Care Act adds "amounts in consideration for property" (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(1)) and "gross proceeds" (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(2)) to the pre-2010 Health Care Act categories of payments for which an information return to IRS will be required if the $600 aggregate payment threshold is met in a tax year for any one payee. Thus, Congress says that for payments made after 2011, the term "payments" includes gross proceeds paid in consideration for property or services."

"Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that's a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS."

"Tax CPA Chris Hesse of LeMaster Daniels tells me:

    Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result."

Damn Those US Government Joos are getting Greedy.  This law will be terrible for business.  For a lot of businesses, it will be easier to leave the country, than to spend considerable time and effort either dealing with this micro-tax reporting law - or evading it.


I think the Vampire's Demands that we feed it will lead to overt Civil War.  As opposed to the Covert Civil War America has now.

STARVE THE VAMPIRE !

If there are any CPA-inclined folks here at TIU or at TFC, I would like to hear your interpretation of this tax law.  Maybe in a week or 2 I can provide a more specific citation of the law.

As I interpret it, if you sell a used car for $600 or more, the person receiving the money is obliged to ask the seller for their SSN - to facilitate filling out a 1099.