The more government tries to “help” us, they more they complicate our lives and suck up our time by filling out endless forms and submitting truckloads of paperwork.
From the new healthcare bill: 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 load of 1099s that could fill Air Force One.
The Internal Revenue Service is looking to collect detailed information about how people do business and pay employees. The goal is to make the laws more fair, but this is an unnecessary increase in tax forms and paperwork.
Under the health legislation, the IRS could be receiving billions more tax documents. Currently, 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. The reason for this increased paperwork is to give the IRS a clear paper trail of who owes taxes, and who they should go after for unpaid taxes.
The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.
In order to file all these 1099s, a person will need to collect the necessary information from all your service providers. In order to comply with the law, you must get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments to avoid improper 1099 filings.
In exchange for “helping” us, Big Brother always seems to want to know more, and more, and more about us. Especially about how we use our money and who we pay.
That’s a kind of “help” I can do without.
Read more here about the costly IRS mandate slipped into the new healthcare bill.