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1099 Insurrection

Sunday Sept 19 2010

Read about the incredible reporting requirement for all business at the WSJ Link. 

A 1099, if you did not know, is a statement to the IRS that one has received income. Apparently this is the ultimate Big Brother intrusion into every transaction that business makes. The Obamacare Bill requires all to report every transaction of over $600-an unbelievable paperwork requirement. 

If there is anything accountants should oppose it is this. Oh did I mention the effort to repeal this described in the WSJ article, failed. 

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5 responses to “1099 Insurrection”

  1. Phillip Garcia Avatar
    Phillip Garcia

    Before Congress votes on any bill they should read it first!! The 1099 bill is a bad bill. I know that it means a lot of work for accountants, but probably this needs to be done because of Medical Fraud, and that would be a lot worst, and probably cost more. If this needs to be done, then it must be done right the first time, or it will cost lots of more money. I believe that the American people will fix this 1099 problem.

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  2. Tina Copas Avatar
    Tina Copas

    The medical and legal professions have already been subject to enhanced filing requirements. This is a sure way to drive many small businesses under due to the time and resource requirements to track and process the 1099 forms. It also has the potential to be a money-maker for the government. Under current law, there is a per-form filing penalty for failure to file. I have not seen it enforced very often but can only imagine the feeding frenzy the government could have with this for non-compliance.

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  3. Dennis Elam Avatar
    Dennis Elam

    Tina
    Is the IRS ready to handle such a volume of documents
    What are your thoughts on what business will do, just send in a print out of the A/P ledger at year end?

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  4. Tina Copas Avatar
    Tina Copas

    At a guess, I suspect for the first several years there will be a large number of companies that do not comply either due to lack of knowledge (many small businesses) or the lack of manpower & cost of generating the forms. I’m sure that there will be a requirement to e-file as well based on the number of forms being submitted so there will be technology issues as well. Personally, I don’t think the IRS is up to this but it is a way to boost the economy – think of all the new government employees we will have to process it all!

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  5. Dennis Elam Avatar
    Dennis Elam

    I suspect there will be an attempt to assign a 1099 to every vendor in the accounts payable file or say in all the expense accounts in the chart of accounts. I would fear doing nothing as it would result in a huge fine for non compliance.

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