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92 Posts
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.
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.
