Compliance costs go through the roof!

[stebo0728]

Check out this link, one of the nuggets recently dug up from ObamaCare, you know, the "you gotta pass it to see whats in it" bill that Mrs Pelosi so elegantly explained...

http://www.lavante.com/1099-reporting-c ... 5QodUlvXlg

Section 6041 of the Internal Revenue Code outlines 1099 reporting requirements. The Patient Protection and Affordable Care Act includes an Amendment to Section 6041 which now requires 1099 reporting for any payments aggregating $600 or more to a supplier per year.

The new amendment will now create reporting requirements for:
All for-profit corporations (excluding tax-exempt corporations) for payments made for Property (goods, merchandise, supplies, raw materials, equipment, etc.) over $600. Companies will be required to submit accurate TIN information or face monetary penalties.

The provision in the health care law is aimed to reduce the gap between income that individuals and businesses make and the federal taxes they pay, which the Government Accountability Office estimates is $345 billion

The Wall Street Journal says Congress hopes the new 1099 provision will collect $17 billion more in federal taxes and fees.

So this is how we "pay for" these new asinine entitlements being cooked up in the year 1 AO (Anno Obama, in the year of Obama)? Lets drive more business out of the country, drop a few more jobs along the way ...

[AZhitman]

Here's what this smells like to me (and I'm no tax expert, even though I've done my own *relatively complex* taxes since 1989):

"OK, you claim you made X amount. However, you spent Y amount on items A B and C. So, where did that money come from? Or are you underreporting your income?"

If I'm understanding it correctly, it seems innocuous enough, right? Wrong. It's yet another intrusion, another "judgement" of the way people manage their finances. There's already penalties for underreporting. There are controls in place to ensure it doesn't occur. Taxes are paid on items purchased.

Seems to me it's moving towards someone driving past my house, seeing a Corvette in the driveway, and saying, "Hmmm. That guy claims he made X amount last year. How'd he afford a nice house and a 'vette?"

If I'm misunderstanding this, disregard... Like I said, I'm no tax expert.

[stebo0728]

Well as far as this legislation goes, it applies to businesses, not individuals (except sole proprietors of course, they sit in both categories)

[IBCoupe]

We're all for closing loopholes to turn around defecits, right? I mean, that's what we (not rhetorical - I'm from there) in MA loved about Romney. He balanced the budget (and brough a surplus) by primarily closing corporate State tax loopholes.

This sort of seems like it's something along those lines.

[AZhitman]

Could be, I'd need someone smarter than me to break it down into lay terms.

Side note: I lived in MA for a year (Sagamore Beach)... what part are you from?

[IBCoupe]

I grew up in North Chelmsford (geographically and formerly known as "West" Chelmsford), which, if you're not familiar, borders Lowell.

I'd try to tackle explaining it, but I'm not familiar with taxes or tax law. I'll be taking a class on Federal Income Tax Law this fall, so ask me again in December.

[AZhitman]

Wow - WAY north. Looks beautiful, I can't wait to go back and see the Cape and that whole area again.

[IBCoupe]

Wow - WAY north. Looks beautiful, I can't wait to go back and see the Cape and that whole area again.

I've only actually been to the Cape once in my life. We always went to NH. Yeah, we were that kind of Mass-hole.