Sunday, May 02, 2010

1099 Mandate from Hell Slipped into Health Bill; Global Warming Profiteering; Fannie Mae Owns Cap and Trade Patents; Shock and Pain Coming to UK, US

With news on Goldman Sachs and Greece dominating the news let's take a look at some other significant stories the past week you may have missed.

1099 Mandate From Hell Slipped into Health Bill

The CATO Organization is noting Costly IRS Mandate Slipped into Health Bill http://www.cato-at-liberty.org/2010/04/ ... alth-bill/

In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules... http://ria.thomsonreuters.com/

Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.

Tax CPA Chris Hesse of LeMaster Daniels tells me: http://www.lemasterdaniels.com/

Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.

The Air Conditioner Contractors of America said:

The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.

In order to file all these 1099s, you’ll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments.

Clearly this is insanity. If enacted, it will be the most widely ignored IRS regulation in history.

Obama Administration Global Warming Profiteering

Pajamas Media is highlighting More Global Warming Profiteering by Obama Energy Official http://pajamasmedia.com/blog/more-globa ... epage=true

Surprising documents made available to this author reveal that Assistant Secretary of Energy Cathy Zoi has a huge financial stake in companies likely to profit from the Obama administration’s “greenâ€