While You Were Sleeping

[launderess]

Pelosi and Obama slipped a small but major change of the tax code into the healthcare "reform" law. It has to do with form 1099 and reporting.

Long story short after 2011 all businesses are going to have to issue a 1099 for most any series of transactions that total over $600 per year. That means everything from purchasing goods,services, etc.

Small businesses are not exempt, and the kicker means that freelancers and such that do work for a business will now have their payments (if they exceed $600/year), reported to the IRS. They in turn will have to issue the same for services,goods and supplies. So if you hire a web developer or electrican or sell things on eBay and have a good customer say who owns a shop or store, you also now have to file 1099s

http://www.thenewamerican.com/index...macare-contains-crippling-changes-to-tax-code

 

[foraloysius]

There is already one other political thread going on...

 

[sudsman]

The record keeping for this is going to be huge.

It is nothing more than gov. trying to see where you spend your money. and to whom. It will take hours of bookeeping for this. And a lot of personal information will now be more available for someone else misuse.

 

[toggleswitch]

666- President # 44

I hear so many muttering that this president is the Anti-Christ fortold in Revelations.

FEH!

Actually the theory I like best is that he is paving the way for the actual Anti-Christ, who comes after him. Hole-ary.

The Chinese must be having a bad run with this guy in that in their culture "4" represents death.

Que sera, sera!

Oh and BTW 2012 is not the end of the world. I'ts the end of the worlk AS WE KNOW IT!

Love, peace and beware of falling rocks/bricks!

 

[passatdoc]

I believe it already WAS the law to 1099 a service to whom you pay more than $300 per quarter. My office is cleaned by a janitorial company and they charge $140 per month. We have been 1099'ing them for several years. I also had roughly $9000 of cabinetry installed in 2009, and we 1099'd them as well, on the advice of my accountant.

However, this legislation appears to lower the threshold to 600 dollar per year, whereas a service earning 290 per quarter or 1160 per year did not require a 1099.

The 300 dollar rule applies to individuals as well. If you pay a gardener or housekeeper 150 per month, you are supposed to 1099 them. This was before the Obama bill.

 

[appnut]

Oh f**k!! Ohdamna!!! Threshold lowered to $600 total from $300 a quarter. Barter economy now grows. B*st**ds!!!!

 

[combo52]

TAX LAW CHANGE

As a small business owner I think its great its designed to catch more tax cheaters and help reduce the deficit. I have generally been very impressed with about any thing Nancy Pelosi has done A think she is one of the best politicians we have in the US she looking out for the average citizens and this country as a whole.

 

[tlee618]

Here Here John, I couldn't agree more!!

 

[appnut]

This "average citizen" don't like the increased screwing I'm gettin, but then, I knew this was gonna happen when he got his hands on everything.

 

[gansky1]

How EXACTLY does this tax code change affect you, Bob?

Are you a private contractor? A sub-contractor? Self-employed contract labor?

Contrary to the rightwing-nut teabagger rantings of the linked article above (which I thought we'd all agreed were insulting to the intelligence of most literate people once before) the new changes will raise and estimated $17 billion dollars over the next ten years in additional tax revenue. Those who do not understand the 1099 reporting system and have never encountered one will likely never be affected by this change. This has been a huge loophole for a very long time, a "hidden economy" in real terms. Those cannot deduct expenses such as home repairs, lawn-care, etc. will never be affected by this law as there is no reason to file a 1099 unless you can deduct those expenditures on your own taxes.

The debt legacy that this generation is leaving the next amounts to $450,000 per household. Just where do you think the money is going to come from? The teabaggers running around ranting about high taxes are the same ones who voted for the people who brought us Iraq, a failure in Afghanistan and an economy headed off a cliff. The people who "screwed you" are the very same people who are now telling you that Obama is a socialist, a communist, on and on. Did you not see your income taxes go down this year? That was part of the economic stimulus package. Has that hurt you in some way or in reality, has it kicked the problem down the road and increased the debt? Are you willing to mail a check to the Treasury for your share?

It's amusing that when asked to define those terms, most who throw them around cannot even come up with a general idea of what those terms really mean. These are people who we should allow back into a leadership position? What do you think their motivations REALLY are? Our best interests or their own power?

Don't rant. Read. Ignorance is no longer bliss. This is the real world, and it's got some serious problems to fix.

 

[appnut]

so I have to do a 1099 and pay taxes if I hire osmeone to do work for me or repair work if the bill is over $600? Sucks. I already pay enough taxes taking care of those who refuse to get a job at all. I see it all the time around here. They rob because they refuse to get a job, even if it's house keeping at a hospital. THOSE individuals I do not mind supporting in some way because they're working and paying taxess in some form, but still need food stamps or other subsidies for rent. They trying and not out robbing businesses or indivudals so peddling drugs. Others are unable to work due to some sort of significant physical challenge. I know of highly educated, well-trained individuals who are totally blind who potential employers refuse to hire becausee they're scared of individuals who are in such a situation, if not worse. ADA hasn't done thiem a bit of good because they don't have resourcess (read $$$$) to do the legal fight and many public defenders and court appointed attourneys aren't the brightest apple in the bushel. So they're screwed. That pisses me off too.

 

[hydralique]

If you hire someone and then report what you paid them on a 1099 form, YOU don't have to pay any additional taxes. All the form does is inform the IRS that they earned money from you, and THEY are responsible for paying the taxes since they earned the money, not you. FYI, it doesn't add new taxes for anyone; any money you earn for whatever reason is supposed to be reported to the IRS and your state tax board and figured into your overall taxable income regardless of whether or not you were given a 1099 form.

 

[brettsomers]

Lots of revealing posts here!

 

[sudsman]

responsible for paying the taxes

not all the time you may have to withold back up witholding and then file another tax form and turn than in. Much more bookeeping and
TOTAL F%% bullishit! You will have to have everyone fill out a tax form with either tin 3 or SS number. The paper work alone will be staggering.

 

[gansky1]

Elimination of CORPORATE 1099 filing exemption.

You DO NOT have to withhold taxes as an individual for any services or vendors, this is the contractor's responsibility.

You as an individual are not even responsible for filing 1099 forms, this applies to CORPORATIONS.

Read.

Don't rant.

http://www.bsmlegal.com/cl_3_26_2010.asp

 

[sudsman]

I think that YOU are the one that needs to read!

The long and short of it is that under ObamaCare all businesses must issue a 1099 whenever they total gross revenue from business they do with an outside concern exceeds $600 annually. Considering that amount of such qualifying transactions that must occur in an economy the size of the United States, the compliance burden on business will be crippling. As a report from the Cato Institute mused, “When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS.”
Take a BIG dose !!

 

[hunter]

further, how many jobs will all this record keeping COST?

It's just too much to have to do!

 

[DADoES]

 
1099 recording-keeping is not difficult with accounting software. And what business nowadays, small or not, doesn't use some sort of computer-based accounting? Rent already has been a 1099 requirement for years. The small business where I've worked for 26 years is incorporated, I send a 1099-MISC for building rent to the landlord which is a partnership.

 

[whirlcool]

Barter economy:

Believe it or not, we have a neighbor who is stocking up on rice and beans. He said that those will be our "new money". The beans are used in place of dollars, and the rice is for change from your beans.

I told you we live in a trippy neighborhood!

 

[qsd-dan]

He said that those will be our "new money".

With the dollar currently worth about .03 cents, the idea doesn't seem so radical to me.

 

[frigilux]

I find it interesting that the tea-party inclined among us kvetch about "those people" not paying taxes, etc., but when it comes to making sure all the rest of us follow laws concerning the reporting of income, it's "taking away our freedom".

So, I guess the people you hire---or you, if you are the hired party--- are no longer free to cheat on taxes. Boo-hoo.

 

[andrewinorlando]

Gee, if I have to pay my "just share" of income tax, then why the hell shouldn't everyone else, individual or corporate??? Some of you guys make no sense. Do these entities have some kind of special exemption that says they don't have to pay their fair share too? Why shouldn't a company be required to ensure that its contractors or vendors are properly reporting income justly paid to them? If I have to get a W-2 every year from my employer that tattles on me to the IRS, then so should any entity that has an income tax obligation. Sorry, that's the way it is. What's fair is fair.

If I could send my lawn man a 1099 every year, you bet your ass I would do it, if it ensured he paid his fair share of income taxes too.