The 1099: A Form of Tyranny
So business owners..... you thought doing your tax reporting was baaaaaaad before....well it just got worse. Here's the latest from the geniuses in Washington. Beginning in 2012, you'll have to keep track of EVERY EXPENDITURE OF $600 and more so you can send a 1099 to that person or business. And remember before you can fill out a 1099 form, you must have the tax ID number and correct address. Yikes!
Can you imagine trying to get Costco's tax ID number??! Not to mention Chevron, Wal-Mart, Office Max, and every other Tom, Betty, Fred and Sally that you do business with! I have heard some dumb things...but this one really is the grand champion.
This is going to increase the workload of every small business owner in America...and for what purpose? So the IRS can see if we are being honest? Once again, the Democrats have completely missed the boat and are tripping over dollars to pick up dimes. Yes, there are some folks that have "two sets of books" (one showing their real income and one that gets reported to the IRS). However, having all business owners fill out mountains of 1099 forms is not going to easily answer that question of who is not claiming all their income. All it will do is create mountains of paperwork.
First of all, can you imagine the size of staff that the IRS would need JUST to track all the 1099's on one business?!! Think of the work involved for just one large company..... say Bank of America!
There was a recent article in CNNMoney.com on May 5, 2010 titled "Health Care Law's Massive, Hidden Tax Change". Hidden in the 2,409 page health care bill in Section 9006 there is a MANDATE that says beginning in 2012 ALL companies will have to issue 1099 tax forms to any INVIDIDUAL OR CORPORATION from which they buy more than $600 in goods or services in a tax year.
Currently, 1099 forms are only used to track payments to contract workers. But in with this new law, whether you are a sole proprietor or a corporation, you will have to send a 1099 to every vendor, supplier, or subcontractor from whom you purchase goods or services of $600 or more per year.
So here's my question: why are we allowing this dumb law to be enacted? Folks, we need to rise up and protest to our elected officials. Our country is slowly being turned into what Ayn Rand foresaw in her book "Atlas Shrugged".
In her book, government taxation and control became so overwhelming that the "producers" (i.e. business owners) just stopped producing and moved to the mountains and started their own community. Society collapsed because all that was left were the "looters" (i.e. government officials) and the "moochers" (people that don't produce but live off the earnings of others.
Since Obama was elected we certainly have experienced a lot of "change" but change for its own sake is stupid. And right now, there isn't a lot of "hope" that the Democrats understand that business owners are what make this country run.
The National Federation of Independent Business is leading the charge to fight against this ridiculous health care law that contains the 1099 provision. If you aren't a member of NFIB, then join. And if you are a member, then send in your comments. Call and write your Congressman now. We are the future...one way or the other.
In the interest of full disclosure, I am a member of the NFIB but I wasn't asked to write this article nor did I receive any payment to do it. I'm just irritated as hell.
Can you imagine trying to get Costco's tax ID number??! Not to mention Chevron, Wal-Mart, Office Max, and every other Tom, Betty, Fred and Sally that you do business with! I have heard some dumb things...but this one really is the grand champion.
This is going to increase the workload of every small business owner in America...and for what purpose? So the IRS can see if we are being honest? Once again, the Democrats have completely missed the boat and are tripping over dollars to pick up dimes. Yes, there are some folks that have "two sets of books" (one showing their real income and one that gets reported to the IRS). However, having all business owners fill out mountains of 1099 forms is not going to easily answer that question of who is not claiming all their income. All it will do is create mountains of paperwork.
First of all, can you imagine the size of staff that the IRS would need JUST to track all the 1099's on one business?!! Think of the work involved for just one large company..... say Bank of America!
There was a recent article in CNNMoney.com on May 5, 2010 titled "Health Care Law's Massive, Hidden Tax Change". Hidden in the 2,409 page health care bill in Section 9006 there is a MANDATE that says beginning in 2012 ALL companies will have to issue 1099 tax forms to any INVIDIDUAL OR CORPORATION from which they buy more than $600 in goods or services in a tax year.
Currently, 1099 forms are only used to track payments to contract workers. But in with this new law, whether you are a sole proprietor or a corporation, you will have to send a 1099 to every vendor, supplier, or subcontractor from whom you purchase goods or services of $600 or more per year.
So here's my question: why are we allowing this dumb law to be enacted? Folks, we need to rise up and protest to our elected officials. Our country is slowly being turned into what Ayn Rand foresaw in her book "Atlas Shrugged".
In her book, government taxation and control became so overwhelming that the "producers" (i.e. business owners) just stopped producing and moved to the mountains and started their own community. Society collapsed because all that was left were the "looters" (i.e. government officials) and the "moochers" (people that don't produce but live off the earnings of others.
Since Obama was elected we certainly have experienced a lot of "change" but change for its own sake is stupid. And right now, there isn't a lot of "hope" that the Democrats understand that business owners are what make this country run.
The National Federation of Independent Business is leading the charge to fight against this ridiculous health care law that contains the 1099 provision. If you aren't a member of NFIB, then join. And if you are a member, then send in your comments. Call and write your Congressman now. We are the future...one way or the other.
In the interest of full disclosure, I am a member of the NFIB but I wasn't asked to write this article nor did I receive any payment to do it. I'm just irritated as hell.
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