An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.
Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.
The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.
Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.
But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.
The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.
Taken together, the two seemingly small changes will require millions of additional forms to be sent out.
"It's a pretty heavy administrative burden," particularly for small businesses without large in-house accounting staffs, says Bill Rys, tax counsel for the National Federation of Independent Businesses.
Eliminating the goods exemption could launch an avalanche of paperwork, he says: "If you cater a lunch for other businesses every Wednesday, say, that's a lot of information to keep track of throughout the year."
Really, nice going guys! Bastards will tax us to death. Discuss.
Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010
Really, nice going guys! Bastards will tax us to death. Discuss.
Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010
Your headline, which does not match the stories headline, is misleading. It's not a new tax, it's a change in the paperwork.
Many lefties have a self loathing issue that is projected to an ambivalence towards American greatness. THis is acted out in policies designed to hamstring America.
Yeah, it's just paperwork.
That doesn't require more spending and wasted man hours by businesses. That's the hidden tax, and it's 100% accurate. Your logic is what's inaccurate.
Dear Lord, please don't let the GOP lose their spine and back away from full repeal... (and no Romney in 2012 pls).
No, it's not a tax. It may be a cost, but it is not a tax. I suggest checking out the definition of the word tax before posting such foolishness.
Yeah, it's just paperwork.
That doesn't require more spending and wasted man hours by businesses. That's the hidden tax, and it's 100% accurate. Your logic is what's inaccurate.
Tax CHANGE.
Try learning to read.
Are you people surprised? Nothing that the government touches has a good outcome.
HA! The Republicans have no spine, all they do is talk, they just as full of **** and lies as Democrats.
Your headline, which does not match the stories headline, is misleading. It's not a new tax, it's a change in the paperwork.
haha this proves why all you conservatives shouldn't have been complaining about the bill, you had no idea what is in it! For all you know there is a section that says "give everyone a million dollars". So stop complaining because you have no idea what is in this bill.
2.3% Excise Tax On Device Sales Begins In 2013; Read On For An Experts Overview Of Market Conditions And Top Stock Winners
2.3% Excise Tax On Device Sales Begins In 2013; Read On For An Experts Overview Of Market Conditions And Top Stock Winners - Yahoo! Finance
So you've read the bill from start to finish?
Tax CHANGE.
Try learning to read.
For all you know there is a section that says "give everyone a million dollars"
oh, brother
half a T cuts to m&m while simulataneously expanding massively both already overstrained entitlements:
Capitol Briefing - Senate votes to keep Medicare cuts
the double counting of another quarter T:
Budget Office Rebuts Democratic Claims on Medicare (Update1) - Bloomberg.com
secret deal with phrma:
Internal Memo Confirms Big Giveaways In White House Deal With Big Pharma
seiu's exemption from the cadillac:
Unions nab sweetheart health-care deal - NYPOST.com
buy insurance or else:
Buy Insurance or Go to Jail? - The Note
http://a.abcnews.go.com/images/Politics/Barthold_letter.pdf
good enough for starters
seeya in november
and december, january...
Why would you quote me and then post something irrelevant to my post?
Your headline, which does not match the stories headline, is misleading. It's not a new tax, it's a change in the paperwork.
Really, nice going guys! Bastards will tax us to death. Discuss.
Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?