A flood of new 1099s hidden in Health Bill. IRS sticking nose in Paypal, Amazon, ebay

[TheFlashlight.org]

... and everything else.


The result: A blizzard of new tax forms that the Internal Revenue Service will begin rolling out next year.

Welcome to America!

http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/

[MelissaWV]

Yep. This was discussed when the "Health" bill was rolled out. Not only is enforcement to be left up to the IRS, but the changes you've mentioned are included. Keep in mind that the IRS is the only agency authorized to "collect" the penalties for not having proper insurance. This "collection" is currently limited to withholding your refund or any other money due back to you from the IRS.

Of course, if this prompts a flood of people to withhold less, then people who aren't used to it will have an April bill for taxes owed, at which time the IRS will be looking to enforce its laws and audits.

It's a massive expansion of the IRS spread out over years, designed to confuse people and milk them for all sorts of extra money.

[TheFlashlight.org]

Yep. This was discussed when the "Health" bill was rolled out. Not only is enforcement to be left up to the IRS, but the changes you've mentioned are included. Keep in mind that the IRS is the only agency authorized to "collect" the penalties for not having proper insurance. This "collection" is currently limited to withholding your refund or any other money due back to you from the IRS.

Of course, if this prompts a flood of people to withhold less, then people who aren't used to it will have an April bill for taxes owed, at which time the IRS will be looking to enforce its laws and audits.

It's a massive expansion of the IRS spread out over years, designed to confuse people and milk them for all sorts of extra money.

I'm worried, cause I know it will happen, that if I sell some old thing I bought at a garage sale, they will say I owe taxes on the full amount of the sale, if I can't prove what I bought it for. Everything we do is becoming (has already become) completely transparent to the taxman and our deluded elected and unelected officials.

[MelissaWV]

I'm worried, cause I know it will happen, that if I sell some old thing I bought at a garage sale, they will say I owe taxes on the full amount of the sale, if I can't prove what I bought it for. Everything we do is becoming (has already become) completely transparent to the taxman and our deluded elected and unelected officials.

While in theory all of those transactions might be eligible for taxation, there's one thing people who think this is reasonable (and there are some) don't take under consideration:

We are human, and misplace receipts, or mess up numbers, or forget to write down what we bought, or any number of other errors....

The Government, however, never forgets.

[dannno]

Good to know:


The rule comes with a floor to weed out the most casual retailers: The 1099-K is only required when a merchant has at least 200 payment transactions a year totaling more than $20,000. But it applies to all payment processors, including Paypal, Amazon.com, and others that service very small businesses.

[Live_Free_Or_Die]

The IRS does not like dealing with people who are not corporate citizens. Corporate citizens have those taxes automatically deducted. They aren't hiring a bunch of new agents for nothing.

[angelatc]

The Paypal / Amazon stuff is Bush era. The Obamacare bill is just another tier of nonsense:

The 1099 changes attached to the health care reform bill are another kettle of fish. These massively expand the requirements for filing the "1099-Misc" form, which companies use for recording payments to freelance workers and other individual service providers. Until now, payments to corporations have been exempt from 1099 rules, as have payments for the purchase of goods.

Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you're making the payment to -- even if it's a giant retailer like Staples or Best Buy -- at the time of the transaction, or else facing IRS penalties.

From an accounting standpoint, it's retarded. They already have the ability to look at your bank account and all your electronic transactions.