OT: Obamacare 1099s

Learn how to quote properly, dingledorf.

So any commercial business has to effectively send the government a copy of every single substantial _invoice_ they issue, with the other party identified by a federal ID? So the gov't can easily match up expenses and reported incomes? I don't think even the communist states ever did anything as intrusive as that. I can only think that the feds will drown in the paperwork unless they can force electronic submission of most of the information.

Yep, Obama == communist :-(

That will be a phenomenal amount of paperwork :-( ...Jim Thompson

Make sure it's *all* paper. I still send in a paper 1040, just as a protest. Most years it's filled out by hand, too.

otest.

It's a shame those 1040 forms are printed on softer, more absorbant paper...

Thanks. It's a conversation I'll have with him in any event, but you confirmed what I thought. Sometimes I think that understanding gubbermint stuff requires a PhD in B.S.

BTW - I could have used your help today. I blew up 2 mosfets. Would've been much better if you were here to provide the sound effects. :-)

Ed

A couple weeks ago I could have also provided the other effects, smoke and stench. Blew up an inductor, but that was on purpose, to see where the limits of a switcher would be. As usual, the Shepherd gave me the looks, left the lab and plopped herself down in the hallway with a sigh.

After Joerg's comments, I went back and re-read the law. Here's the applicable section of the Internal Revenue Code, as amended by Obamacare (HR 3590--The Patient Protection and Affordable Carp Act of

------------------ Sec. 6041. Information at source

(a) Payments of $600 or more

ALL PERSONS engaged in a trade or business and MAKING PAYMENT in the course of such trade or business TO another PERSON [where person now also means 'company'], of rent, salaries, wages, amounts in consideration for property,[...]

------------------

So if you, whether a person or a corporation, make a business purchase--any goods or services--over $600 in any given year, from any other person or business, you must get their SSN, and you must issue them an IRS Form 1099.

If you merely receive payments, then the persons or companies paying you amounts over $600 per year will be sending you and the IRS 1099s, reporting the transactions. (This was already the case under previous law).

That's my read.

-- HTH, James Arthur

coin?

Do they? It used to be that amounts over $1,000 were considered investments, not purchases. Being investments, they were tax-exempt.

-- Cheers, James Arthur

Surprisingly, government schools teach kids that government is great, the bigger the better.

-- Cheers, James Arthur

Sounds fishy to me.

am, TheJoker

Just as long as we're all clear that it's the Capitol that's gaining, not paying tax.

Maybe it should be called the Capitol Gains, Capital Destruction tax? I mean it kind of is, if you think about it--it chops off and dissipates a big chunk of any and all growth. Instead of compound growth =3D $x^(y), it's $x^(0.7*y), an exponential term.

-- Cheers, James Arthur

No, not per invoice. You'll have to track your payments to all suppliers year-long, exchange SSN or TIN, and issue / trade 1099s annually, at the end of the tax year.

Yes. Separately, credit card companies and PayPal are now required to compile and report their cardholders' purchases to the IRS via Form

-- Cheers, James Arthur

If you scroll up to the beginning, quote " ... for purposes of this section the term ?person? includes any corporation that is not an organization exempt from tax under section 501(a)."

If person would mean everyone then even old uncle Leroy would have to issue a 1099 if he buys a refurbished transmission for his 1956 Chevy pickup truck. And on a 1099 there isn't only the tax ID of the seller, there would also be uncle Leroy's SSN to the left of the seller's. Might as well write it onto the mailbox then ;-)

A carp in every pot?

And here, a year ago, you all thought _I_ was being paranoid ?:-) ...Jim Thompson

Right. That's an *inclusive* redefinition, not *exclusive*. That is, 'person' =3D ('person' OR 'corporation').

Uncle Leroy only has to issue the 1099 if buys the transmission for business purposes.

Yes. Don't worry, they'll protect it.

-- Cheers, James Arthur

I most certainly did not think that :-)

Sounds like a matter of interpretation. There should be some sort of official guideline or explanation about this. Otherwise compliance will be rather paltry. I don't think the owner of the hot dog and taco stand who barely speaks English will have the foggiest what to do, and then does nothing.

I am honest with my taxes so all this doesn't affect me, except that I sure don't want my SSN to be in the hands of dozens of merchants. Considering that most if not all other western countries don't have

So if uncle Leroy rents out (as in business activity) the old bungalow behind the farm and buys a new washing machine for it he'll have to issue a 1099 to Sears?

Yeah, right :-)