Another hidden cost of new Healthcare Bill
Another hidden cost of new Healthcare Bill
(OP)
The new Healthcare Bill in the U.S. was a massive document that not enough people read thoroughly. One new burden on business is that anyone you pay more than $600 in a year must get a 1099. If you buy a computer at Best Buy you have to send them a 1099. It used to be that you had to do a 1099 for services, but now according to Section 9006 you have to issue a 1099 for tangible goods--anyone know Wal Mart's Taxpayer ID number?
Read about it at h ttp://mone y.cnn.com/ 2010/05/05 /smallbusi ness/1099_ health_car e_tax_chan ge/?hpt=C2
David
Read about it at h
David





RE: Another hidden cost of new Healthcare Bill
RE: Another hidden cost of new Healthcare Bill
RE: Another hidden cost of new Healthcare Bill
Peter Stockhausen
Senior Design Analyst (Checker)
Infotech Aerospace Services
www.infotechpr.net
RE: Another hidden cost of new Healthcare Bill
I'm more concerned about me. I looked at my accounting methods (I don't want to call it a "system") and if I had to do file the 1099 for people I buy stuff from for 2009 it would take about 250 hours of manual work, not counting the effort required to find out the tax id numbers for the people I buy stuff from. At my charge rate that is a lot of money. I don't have an accountant because he wouldn't accomodate my rate sheet (i.e., different rates for retainers, T&M jobs, and teaching, different information capture requirements for each) so I started doing it myself. It has been pretty easy for 7 years.
This new BS may be enough that I won't be able to stay in business much after 2011. I'll be 59-1/2 early in 2013 and can start taking money out of my 401K. Maybe I'll work through tax time 2013 and just not do the 1099 stuff and figure by the time they catch me I'll be retired on an island somewhere. I was planning on shutting down before all the provisions of the Healthcare plan went into effect in 2014 anyway so it is only 10 months early.
David
RE: Another hidden cost of new Healthcare Bill
Think about it, it's a way for the government to keep tabs, being big brother. If I buy a used truck from a person or buy all kind of junk from ebay for my business, with that bill, they all get reported now to the IRS if more than $600. Whether the transaction is taxable or not for the seller, that is for the IRS to determine. They can scrutinize these kinds of transactions now because of the paper trail.
It's also like a tax increase because now the government will have their hand on every transaction, looking for potential tax revenue. Also hire more federal workers to do this so a more bloated government.
RE: Another hidden cost of new Healthcare Bill
- Steve
RE: Another hidden cost of new Healthcare Bill
Travis Mack
MFP Design, LLC
www.mfpdesign.com
RE: Another hidden cost of new Healthcare Bill
I'm thinking that when the rules are finally published (in 2012 after they are already in effect, the government has stopped caring about the Ex Post Facto clause of the Constitution), they will exclude things you charge on a credit card, but I could easily be wrong about that. The stated intent of this nonsense is to catch the people who do cash/check business and don't report all the money coming in. If you accept credit cards then you are already getting the equivalent of a 1099 from your bank for that part of your income and you are already writing off the 3-5% that the credit card company charges you. At least that is what I'm hoping.
David
RE: Another hidden cost of new Healthcare Bill
Or would this be like wrestling with a pig in the mud?
B.E.
RE: Another hidden cost of new Healthcare Bill
David
RE: Another hidden cost of new Healthcare Bill
That's not what I wanted to hear.
B.E.
RE: Another hidden cost of new Healthcare Bill
This country has a built-in mechanism for radical non-violent revolutionary change of government called the electoral process. It was set up that way so that so that opportunities for incremental change would occur every two years.
That low, ominous rumbling noise you hear in the background is not the machinery of war or advancing troops. It is the approaching tsunami of angry discontent that promises to sweep the political coastlines. The pendulum will swing back the other way before too long.
TygerDawg
Blue Technik LLC
Virtuoso Robotics Engineering
www.bluetechnik.com
RE: Another hidden cost of new Healthcare Bill
Now, now SomptingGuy... have some sympathy. I've just looked up on Wiki what "1099" form is - I'm still not sure, but there appears to be 23 variants of it!
Is it to do with tax payable or claimable?
At least here in the UK, we only have one VAT (Value Added Tax) form, and all accounting packages do it automatically.
H
www.tynevalleyplastics.co.uk
RE: Another hidden cost of new Healthcare Bill
- Steve
RE: Another hidden cost of new Healthcare Bill
The VAT is looking better and better, except none of the merchants I dealt with in the London area had a clue about it. When I did my expense statement after my recent extended trip to the UK, I had around 80 receipts and only 12 of them had VAT listed. 5 had two different VAT rates and the clerks couldn't tell me which one I had paid. I'm not sure how clean your "nice clean" VAT program really is.
David
RE: Another hidden cost of new Healthcare Bill
Just out of interest, what can you do with UK VAT receipts? Can you reclaim as a non EU citizen? Whenever we travel overseas on business, we are instructed to bring back all reciepts, although sales taxes paid outside of EU are just lost.
- Steve
RE: Another hidden cost of new Healthcare Bill
VAT on the crap you buy in tourist places was pretty much just part of the price and if there was any rebate it was beyond me.
David
RE: Another hidden cost of new Healthcare Bill
There is, of course a big "catch" in the system. The retailer you buy stuff from has to be registered:
http://w
H
www.tynevalleyplastics.co.uk
RE: Another hidden cost of new Healthcare Bill
David
RE: Another hidden cost of new Healthcare Bill
Speaking of crazy laws, did you hear about the EPA rule that became effective April 22, 2010. If you hire anyone to work on a house older then 1978 and they disturb greater than 5 sf of any painted surface, they must perform lead abatement measures. The house must be sealed off, all workers wear ventilations systems and protective gear, clean every surface, all debris must be treated as hazardous materials.
RE: Another hidden cost of new Healthcare Bill
You can either pay the tax yourself and say nothing, or you send the form to claim the expenditure.Of course we would like to reduce our taxes so,
in this manner the IRS turns us all into a bunch of finking Freddie's. Grand aint it.
B.E.
RE: Another hidden cost of new Healthcare Bill
Thats the beauty of the VAT system, government can raise the VAT any time they want and nobody really knows how much tax they are paying. Ideal system for a liberal tax and spend government where government can balance the budget by raising the VAT whenever necessary. Too bad they never lower it...
RE: Another hidden cost of new Healthcare Bill
Once the VAT is established, guess what happens to the income tax?
B.E.
RE: Another hidden cost of new Healthcare Bill
Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East - http://www.campbellcivil.com
RE: Another hidden cost of new Healthcare Bill
the right wing, anti-everything has a way of cheery picking everything they don't like, they exagerate things out of context and exagerate it to make it look were going to get tissue out of Linens tomb and recreate him to run the country.
RE: Another hidden cost of new Healthcare Bill
BJC, your comments would carry more weight if you bothered to spell check, proof read, and avoid ad hominem attacks.
This thread is about Section 9006 of H.R 3962. It is not cherry picking, it is a discussion of the law of the land. The discussion is about the impact on our businesses of this seemingly unrelated add-on to the bill.
You and MiketheEngineer (whoever that is) are certainly welcome to discuss how this part of the bill will affect your business, but please try to keep the personal attacks confined to the other sites you play in.
David
RE: Another hidden cost of new Healthcare Bill
Full bill is available at: http
RE: Another hidden cost of new Healthcare Bill
David
RE: Another hidden cost of new Healthcare Bill
RE: Another hidden cost of new Healthcare Bill
I've been very involved with contracts, regulations, and other legal stuff for my whole career and it took me an hour. Most small-business owners have expertise in other areas and don't want to master legal-speak. This "little" change to the tax code (which was stuck in 5 bills this year to try to sneak it through, the author is trying to find unreported income) will change some details about the way every small business works (e.g., I'm going to keep track of where I spend office supply money and as I approach $600, I'll change suppliers, same with vehicle fuel).
By the way, the IRS Code does not require a 1099 for anything. It specifies the list of data that must be provided to the IRS and to the person you paid. A 1099 has blanks for all of the required data, but folks like Fidelity Investments provide the information free form instead of on the form. That is why if you search on "Form 1099" within the Health Care bill or in the referenced section of the tax code you get zero hits. This feels sleazy to me and we should all thank the "right-wing anti-everything" pundit that dug it out.
David
RE: Another hidden cost of new Healthcare Bill
RE: Another hidden cost of new Healthcare Bill
It is funny, one of my clients is a huge multi-national and they have only sent me a 1099 with the right amount once out of 7 years I've been in business. It seems to be hard to get the info right for services, I think it will be impossible to get it right for goods.
David
RE: Another hidden cost of new Healthcare Bill
CNN Money
RE: Another hidden cost of new Healthcare Bill
David