Small businesses threatened with 1099 tax form tyranny

Small businesses threatened with 1099 tax form tyranny provision in health care bill

by Mike Adams, the Health Ranger,
NaturalNews Editor


(NaturalNews) According to a recent report from CNNMoney.com, the massive U.S.
health care system overhaul includes more than just a transition to
government-run medicine. A small section hidden away in the 2,409-page
bill requires all businesses to send 1099 tax forms to every company or
individual from which they purchased more than $600 in services and
goods throughout the tax year, beginning on January 1, 2012.

As you'll see below, this new law threatens to cause a wave of paperwork
chaos across the entire U.S. economy, stifling the operations of small
businesses and driving more jobs overseas.

Here's why...

1099s required for virtually any expenditure

For those of you who aren't familiar with a 1099, this tax document is typically issued to independent contract
workers who receive payments for work they've done. "Employees" of
businesses are issued W-2 forms at the end of the tax year while
independent contractors and other freelancers making money outside of
the wage structure receive 1099 forms.

But the new change (conveniently slipped into the health care bill that nobody actually
read prior to voting on it) drastically expands the scope of 1099s. Not
only will contract workers be receiving them, but so will millions of
individuals and companies that receive more than $600 in payments for
services and products they provide throughout the tax year.

And if you're a small business owner, you will be required to issue a 1099
to every business from which you purchased more than $600 worth of
goods or services
.

If you buy a laptop at Best Buy, for example, you will be required by law to issue a 1099 form to Best Buy.
If you purchase over $600 in internet services, you need to issue a 1099
to your broadband provider. If you get a car repair over $600, you have
to issue a 1099 form for that, too.

This law might as well be called the "Accountant employment act of 2010" because it will
drastically expand the mountain of tax paperwork needed to be filed by
all U.S. small businesses and corporations.

How the changes will really impact small business

Remember: The new law will require 1099s to be issued to both individuals and corporations.
This means that a musician who buys an expensive new guitar will have to
send the retailer a 1099 at the end of the year for that purchase. A
florist will have to send 1099s to each of her suppliers as well,
including the flower growers, the ribbon company and even the place
where she buys tape and scissors if those purchases exceeded $600
throughout the year.

In fact, the more sources businesses buy from, the more 1099s they will have to issue, which will likely cause
many of them to consolidate their vendors.

Do you see where I'm going with this? These "small" changes are going to have a monumental
impact on how business is run in America, particularly small businesses
who are already strapped with heavy regulatory burdens. 1099s will be
used for a lot more than just taxing compensation. They will be used to
tax virtually all business expenses, driving up prices for everyone.

The changes are also going to create an "avalanche of [new] paperwork",
according to Bill Rys, tax counsel for the National Federation of
Independent Businesses. Business owners are going to have to spend a lot
more time tracking purchases and saving receipts, which for many is
going to be a logistical nightmare that could drive them right out of
business.

Small businesses will go out of business, thanks to the IRS

Those of you that own or operate a small business already know how difficult it can be to stay afloat and compete
in today's economy, especially during tough times. Besides the regular
day-to-day operations, there are all kinds of fees, taxes and other
regulatory burdens that make doing business a challenge.

Can you imagine having to track and tally every single business purchase you
make throughout the year and send 1099 forms to all of them
? How
about having to collect names and taxpayer identification numbers from
every vendor or payee that you dealt with? Can you imagine how long it
would take on the phone with Wal-Mart customer service to try to obtain
the company's tax ID? Multiply this by the other five hundred companies
you do business with, and you start to get an idea of the new burden
this is going to place on small businesses across America.

It's going to take a whole lot more time to comply with these rules, and many
small businesses will probably have to hire someone full-time just to
take care of it all. The additional expense will either further strain
companies who can take the hit (which will just drive up prices for
consumers) or force them out of business. But no matter how you look at
it, it's a lose-lose situation for American businesses.

And what about all the companies on the receiving end? Imagine the flood of 1099
forms companies like Apple will receive at the end of the year from all
the freelancers who bought new computers from them? Or Office Max for
millions of dollars of office supplies? The burden will be tremendous
not only on those who have to track and send all the 1099s, but also on
everyone who receives them.

And it's not just the big guys that will bear the burden. There are plenty of small, family-owned suppliers
who are going to have a tough time complying. Many of them will most
likely be forced out of business because they won't be able to absorb
the cost. Or businesses will choose instead to make purchases only from
large "one-stop" shops because the paper trail will be a lot easier to
manage.

Government greed and corruption is ruining America

The U.S. economy is already in shambles and many Americans are unemployed, but leave it to the American government (and the puppet
masters who control them) to increase the burden on American business
even more. Are these people out of their minds?

This small tax change is going to have huge ramifications once it kicks in starting in
2012. Small businesses will take the biggest hit, resulting in even more
lost jobs and higher prices for goods and services. Many companies
might decide to just pack up shop now and move to another country before
it all kicks in, and that means more American jobs being exported to
other countries.

The whole thing speaks volumes about how things are run in Washington where it's all about money and control.
Bureaucrats are always looking for new ways to pass new laws that will
bankroll their out-of-control spending programs. You know... the ones
that get them reelected.

Fortunately, not all politicians are in on the game. Rep. Dan Lungren (R-Calif.) recently introduced a bill called "The Small Business
Paperwork Mandate Elimination Act
, which would rescind the 1099
provisions from the health care bill.

It's a good start, but what about the rest of the politicians? Where is the outcry from the alleged
"public servants" over tax changes that threaten to destroy American
small businesses?

Small businesses are the primary drivers of our economy. They are the ones responsible for real job creation in
America. Provisions like the 1099 mandate only work to destroy the very
fabric that has held America's economy together. Any government that
tries to destroy this crucial sector is only accelerating the country's
financial demise.

It's time for people to wake up and take a stand against this paperwork tyranny. A nation drowning in tax
forms can't get much of anything else done, and Washington, it seems,
just can't help but heap another tax compliance paperwork nightmare upon
the People.

That is has all been hidden inside the health care reform bill is yet another insult to the intelligence of us all. Who do
these politicians think they are? How quickly they forget that Government
derives its power from the People
and not the other way
around.
http://www.naturalnews.com/028854_1099_small_business.html

Views: 48

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

MAC posted videos
yesterday
tjdavis posted photos
yesterday
Doc Vega posted photos
yesterday
Doc Vega posted a blog post

Veteran’s Day a Time That Should Be Honored

 At a time in our confusing and idiotic history when a Democrat can’t define a woman when being…See More
yesterday
Michael A. Pinson posted a photo
yesterday
cheeki kea commented on tjdavis's blog post Mountain Miracle
"Thumbs up to this awesome school. Isn't it amazing that some of the greatest teachers are to…"
Sunday
cheeki kea commented on cheeki kea's photo
Sunday
cheeki kea commented on Doc Vega's blog post This is Incredible! Trump is Already releasing Plans to Dismantle the Deep State and Purge the Corrupt Players
"Oh wow he is not wasting any time. May the power of the words he just spoke resonate across America…"
Sunday
tjdavis favorited cheeki kea's video
Sunday
tjdavis favorited rlionhearted_3's photo
Sunday
tjdavis posted a blog post
Sunday
Doc Vega's 4 blog posts were featured
Saturday
cheeki kea's 2 blog posts were featured
Saturday
Doc Vega commented on tjdavis's blog post Mountain Miracle
"A creative way to get hands on participation with students and the community."
Saturday
Doc Vega favorited tjdavis's blog post Mountain Miracle
Saturday
Doc Vega posted a blog post

The Perfect Lies

The Perfect Lies Time is like an ocean with its secrets running deepLike all the lovers you’ve…See More
Saturday
tjdavis posted blog posts
Saturday
tjdavis posted a blog post
Friday
Doc Vega posted blog posts
Thursday
rlionhearted_3 posted a photo
Thursday

© 2024   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted