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Senior Contributor

1099 tax-reporting mandate

I just came across an article today discussing the 1099 tax-reporting mandate.  Republicans promised to eliminate it and  Obama did the same in his State of the Union Address.  So, why after nearly a year hasn't it been eliminated?  Here's what the article stated:  "Congress can't undo the looming 1099 tax mess without finding $2 billion a year to offset the government revenue the wildly unpopular provision is expected to generate." 

 

How many people are really going to send 1099's to every person, business, etc. where they spend over $600.00?  I would venture to guess that identity theft will skyrocket when everyones social security numbers are floating out there.  I'm incorporated, but this just seems idiotic not to eliminate it because they can't find a $2 billion offset.  Here's an idea for them that would not only offset the $2 billion but would also be a huge revenue inhancer:  simply put a sales tax on food.  Obama's budget wants to double the Federal fuel taxes.  It's obvious this would hurt the poor the most.  If they don't care about hurting the poor, put a sales tax on food.     

6 Replies
Senior Contributor

Re: 1099 tax-reporting mandate

It`s gotta be one of the damned stupidist ideas they`ve ever had for revenue enhancement, thank Obamacare for it. The Republicans would have axed it long ago, but the Democrats tied it in knots with tax cuts or some $hit, which made it imposible to get rid of.  What I can`t figure is how it would help the government? I mean, I spend over $600/yr at Bomgaars, Fleet Farm, TSC, Pioneer, Asmus Farm supply ect ect, like all those places need to have a 1099 sent to them or they`ll "cheat" on their taxes???? Highly highly doubtfull, just more paperwork for me. Because of the results of last November`s election, the Republicans WILL GET RID OF IT !!!!

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Veteran Advisor

Re: 1099 tax-reporting mandate

What it tells me is that there are a whole lot of people collecting tax and then not reporting it and keeping it as extra profit.  So far no repub has come up with a plan to "GET RID OF IT."

Senior Contributor

Re: 1099 tax-reporting mandate

Senator Mike Johanns from Nebraska has a bill. Rep Dan Lundgren from California has a bill, even Democrat Senator Max Baucus from Montana knows what side his bread is buttered, he has a bill to repeal the 1099`s.  Do you really think the Farnhamville Coop has to have a 1099 sent to them or they will cheat on their taxes?  A little podunk like me will probably have to send out a couple dozen more 1099`s if it isn`t repealed.  Imagine the hundreds of extra pieces of paperwork each business would have to deal with.  The devil side of me would like to see it go unrepealed and watch all the pissed off business people, the Democrats would take a even bigger shelacking in 2012 Smiley Very Happy

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Veteran Advisor

Re: 1099 tax-reporting mandate

Do you think because I said something about the fact that the govt figured to get billions of dollars that they don't get now, that somehow I was in favor of it?  I couldn't care less if you or anyone else has to do it or not.  I have not given any thought to it since I won't have to do it.  But if there is that much money to be gained, then people are doing it free will, don't you think?

Senior Contributor

Re: 1099 tax-reporting mandate

I`ve heard the number $2 billion thrown around, I don`t believe it.  Oh, I agree there`s a underground economy and bardering and such, also down right tax cheats out there.  It`s just 1099`s won`t stop any of it.  For a Farmer who gets grain and livestock checks, it goes in his bank account, if he gets audited the IRS guy says "What bothers me is where all these deposits came from!!" and you`re busted. So this 1099 deal is misguided at best, those that are flying under the radar, hoping they never get audited would definitely steer clear of the 1099`s. I do know if you hire help get their SS number up front, it can be a bearcat hunting them down in January. If you didn`t "need" a sermon on 1099`s, I apologize, Schnurrbart.  Smiley Happy

Senior Contributor

Re: 1099 tax-reporting mandate

If you get by with only having to send an additional couple dozen, I'd say you're definitely in the lucky group.  If I fill my semi up with today's prices, it will be over 600 bucks.  If I order parts which I do a lot of over the internet, it is usually over 600 bucks.  Cell phone carrier is over 600 bucks.  Dish carrier is over 600 bucks.  I'd venture to guess I could be sending upwards of 50-100 1099's.  In order to conduct business, people will have to get a tax ID number before they purchase anything.  The ones who will get rich on this will be accountants and CPA's.