Show-me
TSP Legend
- Reaction score
- 104
This was reported on Neil Bortz's show yesterday. Looks like the community organizer is trying to squeeze every dime out of everyone. FAIR TAX SYSTEM WOULD BE EASIER AND CHEAPER.
1099s
In the United States, there is a reporting requirement that requires businesses to fill out 1099 forms for certain transactions of $600 or more. These get sent to the IRS. These are typically filled out when individuals receive $600 or more of non-wage income from a business over the course of a year. The law can be found at here.
New Law
In March, 2010, HR3590 ("The Patient Protection and Affordable Care Act") was passed. You can find it here. This 900 page health care bill has on page 737, section 9006 titled "EXPANSION OF INFORMATION REPORTING REQUIREMENTS." This section changes the reporting requirements.
Specifically, it changes the law so that [1] payments to corporations are included (except ones exempt per section 501(a), such as charities), and [2] "amounts in consideration for property" are included (so purchases over $600 are reported). The law takes effect January 1, 2012.
Key Facts
1099s
In the United States, there is a reporting requirement that requires businesses to fill out 1099 forms for certain transactions of $600 or more. These get sent to the IRS. These are typically filled out when individuals receive $600 or more of non-wage income from a business over the course of a year. The law can be found at here.
New Law
In March, 2010, HR3590 ("The Patient Protection and Affordable Care Act") was passed. You can find it here. This 900 page health care bill has on page 737, section 9006 titled "EXPANSION OF INFORMATION REPORTING REQUIREMENTS." This section changes the reporting requirements.
Specifically, it changes the law so that [1] payments to corporations are included (except ones exempt per section 501(a), such as charities), and [2] "amounts in consideration for property" are included (so purchases over $600 are reported). The law takes effect January 1, 2012.
Key Facts
- This reporting is only required to be done by businesses ("All persons engaged in a trade or business"), when they pay money for something.
- This reporting will be done if you sell bullion worth $600 or more.
- The government will not know that you sold bullion (but would have the information necessary to compile a list of people who either had bullion, or a connection with the bullion industry).
- This reporting is not required when you buy bullion.
- This reporting is not required for transactions between two individuals, only when the buyer is a business.
- You are always required to report income on your tax return whether or not you receive a 1099 form.
- H.R. 5141 is attempting to repeal this (see also govtrack.us). If passed, it would cause the new law not to take effect, so reporting would continue as it had in the past.
