New 1099 Regulations in 2012 - WTF??

J

JMan1234

New member
Apr 18, 2008
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Texas
What a load of crap...this is going to be such a hassle.

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.
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Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010


So if I buy a new computer for example, I've got to send a 1099 to Dell.
 


Thanks Obama!

More taxes and more paperwork sweet that should make it easier for us small businesses to create jobs.
 
subigo said:
I just won't do it.

Problem solved.
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Bad idea IMO, the IRS hasn't issued it's regulations in regard to this new piece of legislation but the goal of the program is to try and capture lost revenue. My guess is that failing to file the paperwork would be equivalent to tax evasion, so either way you'd be screwed.
 
ayzo said:
Bad idea IMO, the IRS hasn't issued it's regulations in regard to this new piece of legislation but the goal of the program is to try and capture lost revenue. My guess is that failing to file the paperwork would be equivalent to tax evasion, so either way you'd be screwed.
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Exactly what I was thinking. Not to mention, before we all get our panties in a bunch, keep a couple of things in mind.

1. The IRS wants their fucking money. They'll make more changes and updates to this so that it will be a more simple process before the law takes effect.

2. This shit comes from people not claiming their income. Chances are, you know someone right now who you could call on the phone and thank.

3. Common sense says, this rule wasn't made to track buying computers for your business. This is to catch people who lie about business expenses that aren't so easily tracked i.e. online.

4. Don't like it, bitch about it then. You'll get your chance to complain when they start holding public meetings on this rule next year sometime.

Not saying that I like the new rule, I've worked in taxes and accounting enough to know this will suck at first. Just playing devil's advocate. :D
 
So if I go to Best Buy to purchase a computer for my company, I have to get Best Buy to complete a 1099 form for me?
 
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