Horrificly Costly 1099 Addendum to Healthcare Bill

Watch out for Obama's healthcare bill. It spells bureaucratic doom for every business in America.

Changes to the law concerning the issuance of 1099 MISC forms were slipped into the new Healthcare Bill. Changes that will cost businesses BILLIONS of dollars and make life a nightmare for any small business.

The new bill states that now if you do business valued at more than $600 in goods or services with ANYONE, corporate or individual, you have to issue that business or person a 1099 now. That means if you buy $600 in office supplies from Office Max, you need their taxpayer ID and send in a 1099. That gas station you visit all the time, they get a 1099. That guy on eBay you bought a computer from for $622 with shipping, you better get his EIN number or social. Otherwise you're supposed to withhold taxes from the transaction. WTF?

This is one the dumbest f*cking things I've ever heard in my entire life. A true failure of our government. Think of how many transactions occur in the open marketplace. This will lead to BILLIONS if not TRILLIONS of 1099s being issued. And this will of course cost everyone a ton of money. All under the guise of the IRS trying to squeeze a few additional tax dollars out of people.

Thompson West's IRA quotes:
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. (see more at http://ria.thomsonreuters.com/)