Advance Notice ... Time To Call Your Congressman & Senators

Plumber_Bill

This was in my in-box this A.M. If the suits in Washington are really considering this. Then a nightmare on business is about to occur. Not to mention that a lot of trees will die. Maybe this is a way to get the post office back in the black. Of all the STUPID ... You may fill your own terms!


Dear PHCC Member,

In the Senate Finance Committee’s draft of comprehensive health care reform, there is a proposal to require ALL businesses to issue Forms 1099 to all their service providing vendors, including corporations (e.g. overnight delivery services, the phone companies, the advertising media, and the information technology service providers).

Under current tax law, any business that pays an individual more than $600 annually for services provided to the business, issues a Form 1099 information report to the individual and to the IRS. The Form 1099 lists the total amount of the payments. Businesses are not required to issue Forms 1099 to corporations. A proposal has been made that would alter the requirement in two ways. First, it would eliminate the corporation "exception." (In the case of services, many corporate vendors provide common place services as overnight delivery, telephone, internet, banking, advertising, technical, and financial.)

Second, it would require the business to issue a Form 1099 for payments for goods it receives from any vendor. Basically, this change would require a business to issue a Form 1099 to any of its vendors to which payments of more than $600 annually are made for goods or services.

To comply, the business must obtain the Taxpayer Identification Number (TIN) from the service vendor and if the business does not get the TIN, it must withhold payments. This places the entire potential punitive burden on the innocent businesses (penalties for failing to file 1099s) and the entire administrative burden on them as well. Under existing law, Form 1099s are issued to individual service providing vendors who are paid more than $600 for the services they provide.

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This and That

gene2

Trying to not make this political, but we as citizens need to watch EVERY move being made by our representatives. They seem especially bold now a-days in changing our constitutional rights & freedoms. You can tell when any politician is lying, his/her lips are moving.

DetailHandyman

Seriously...don't know if I'm just reading this incorrectly or it's really that effed up.

I would now have to send a 1099 to Lowe's, Home Depot, the electric supply house, Sprint, etc?

I don't believe that this is in the least bit true. I guarantee that Lowe's does not want to deal with an additional million pieces of paper when they do taxes.
Big companies would be fighting this tooth and nail because it would cost them tremendous $$ with no benefit.

Or is this some kind of stimulus plan for accountants?

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The cat box ain't gonna clean itself.

DetailHandyman

Bill...do they have a link to the original text of the proposal?

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The cat box ain't gonna clean itself.

Plumber_Bill

The PHCC sent that out as advance notice to an upcoming problem, there was no link. I googled in "proposed 1099 reporting changes"

The following showed up http://en.wikipedia.org/wiki/Tax_information_reporting

Scroll down until you get to Tax Gap and Proposed Changes

then click here http://www.irs.gov/pub/newsroom/budg...brief-2009.pdf

Happy Reading !!! Not only 1099's to vendors. But those taking credit cards will now have a 1099 sent in to Feds as to how much you received.

Like I posted yesterday this is a NIGHTMARE (IMHO)

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This and That

DetailHandyman

Not seeing mention of the alleged changes in 1099 reporting.

Plenty of other BS in there though!

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The cat box ain't gonna clean itself.

Plumber_Bill

I posted this the other day based upon info I received from our national plumbing asociation.

Per the replies some don't believe or have no interest, I guess.

Here's more from a different source.

IMHO This is a disaster being placed upon small business.
So the health care looks good and can be afforded buy those in Washington.

http://smallbusinessreview.com/regul...ll-businesses/

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This and That