Latest GOP talking point "Costly changes to 1099 reporting in health care law"

[hedgehog]

I've heard a couple of references to this the past few days, so here's the skinny:

"Beginning in 2012, under a little discussed mandate of the health care reform legislation, businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099.

“Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases,” said Chris Hesse, director of taxation at CPA firm LeMaster DanielsPLLC in Washington state, as quoted by Chris Edwards in a Cato Institute blog.

“And for the first time, 1099s are to be sent to corporations,” Hesse said. “This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.”

The health care bill mandate aims to collect lost revenue from companies that under-report on their tax returns. The provision is expected to raise $17 billion over 10 years."

http://www.accountingweb.com/topic/tax/costly-changes-1099-reporting-health-care-bill


This story is from someone who wants to repeal this provision.

Now, my husband is asking about plane tickets and hotel bills. He agrees though, that the taxpayer ID can be added to the credit card bill. He also suggests that the 1099 would be reported electronically rather than on paper. 2 years to get ready doesn't seem an onerous burden.

[LiberalFighter]

1. What other changes will businesses have to implement between now and then

not related to the bill that they will blame the cost on HCR? If they will have to make other changes adding this will either be a no cost or low cost change.

[The Northerner]

2. Why does the federal gov't want everything over $600 to be reported to them anyway?

[hedgehog]

3. It's more or less a W-2 form for business

[FBaggins]

5. What does that have to do with HCR though? n/t

[hedgehog]

6. About as much as student loans - I'm beginning to suspect that

Obama snuck a lot of stuff in there while the republicans were out holding the fort against single payer!

:evilgrin:

[BlueIdaho]

4. They should start supporting a single payer government run health care program then.

Get all those pesky tax forms right off their backs.

[AngryAmish]

7. It is true and it is a giant pain in the ass

Whichever stupid fuckwit who thought this up should get punched in their stupid face.

Yup, plane tickets, copiers, anything. Do I have to hire an accountant full time?

I own a small business. I do most of the W2s. This is going to cause me hours of grief. Filling out the form is the least of it. Getting SSNs or EINs from all these people will sssssssssuuuuuuuuuuuuucccccccccccccccckkkkkkkkkkkkkkkk.

Imagie calling up Dell, AT&T, etc, then getting s live person then convincing them to give you the EIN. And imagine the identity theft.


This is beyond stupid.

[county worker]

10. Do you use a computer to do your accounting?

You send out requests for the TIN. If you don't get it you still report the payments on a 1099 only you tell how many without the TIN. You already have to do it for businesses that are not corporations.

Most accounting systems have as the accounts payable module the place to set up the information when you set up the vendor. The at the end of the year you run reports. Also many systems print then 1099's for you.

[ProSense]

8. More Republican hypocrisy

SMALL BUSINESS REPORTING REQUIREMENTS

RHETORIC: GOP says they’re eliminating the small business “1099” reporting requirements

REALITY: GOP voted against eliminating the small business “1099” reporting requirements (H.R. 5982)

link

Senate fails small-business owners on 1099 reform

<...>

The Senate considered two different proposals to reform that law today. One, from Bill Nelson, would've exempted purchases of less than $5,000 (which is 90 percent of them) and paid for the lost revenue by cutting oil and gas subsidies. Another, by Mike Johanns, would've repealed the provision entirely and paid for it by cutting spending on public health and weakening the individual mandate. Both failed. Nelson got a majority, but his 56 votes weren't 60 votes, and so they were meaningless. Johanns got only 46 votes.

But here's the kicker: The votes were almost perfectly opposite. Look at the roll call for the Nelson amendment and the roll call for the Johanns amendment. Nelson's 56 ayes included zero Republicans. Johanns's 46 ayes included seven Democrats. So though both amendments were designed to do the same thing, there was very little overlap among their supporters. Most Democrats weren't willing to weaken the individual mandate or our public health infrastructure. No Republicans were willing to cut oil and gas subsidies to free small-business owners from a law they describe as ruinous.

<...>

[county worker]

9. You already have to do it for every vendor or person who is not a corporation.

The hard thing is to keep the information through out the year. Most businesses with a computer accounting system already keep the information. Also the hard part is to get the tax payer ID# or TIN.

Now most businesses have the TIN because of State sales tax requirements. If you sell something to another business and they are the end user you have to withhold sales tax in your state and in other states where you have a presence. You ask for a vender's TIN and resale license as a matter of course when they open an account with you.

I've been a controller for a few different corporations.

[hedgehog]

11. When I buy feed, the first question I get asked is "are you exempt?"

If I was running a working farm, I wouldn't pay sales tax on feed and I suppose certain other items. Some of my seed catalogs follow the same procedure. This is a walk-in, pay by cash situation. So, as you suggest, the 1099 requirement looks like it piggybacks on a lot of existing paperwork.

[niceypoo]

12. It's paid for

Unlike anything the GOP has done in the last 30 years, the healthcare bill is PAID FOR.