May 5

Obamacare Legislation Mandates 1099′s For Every And All Business Transactions In Excess of $600!!

We have relentlessly been stating that Obamacare was not truly about improving the quality, cost or availability of health care but instead about government control and power. The following discovery exposes yet another example of this and adds to the litany of egregious mandates contained within this corrupt, dishonest, destructive and freedom and rights abrogating legislation.

A New ObamaCare Horror Story
Rick Manning 4/29/2010

America is discovering in horror just what Nancy Pelosi meant when she famously stated during the health care debate that, “we have to pass the bill so you can find out what is in it, away from the fog of the controversy.”

The past couple of days the news has been filled by reports that the Obama Administration’s own actuary for the Center for Medicare Services estimates that costs of the law are anything but revenue neutral and that they far exceed the ‘estimate’ provided to the public by the Administration. While many are chasing the question of if Obama knew about the higher estimates, when he knew, and if he suppressed them until the vote occurred, there is another massive problem discovered within the law.

Businesses will have to file 1099 forms with both the IRS and send them to the company that provided the services or sold the product for every expenditure that exceeds $600. If you react to this sentence the way my wife, who has run a small business did, you are saying, “that can’t be right, 1099s are only for contract employees.”

Well forget everything you thought you knew about 1099 forms, because Obama’s health care law has changed it.

In practical terms, here is what the new law means. Joe’s Plumbing prints up 100 color presentations at FedEx Kinko’s for a trade show in New Orleans, where they are staying at a Holiday Inn for six days.

At a minimum, Joe’s Plumbing will have to contact FedEx Kinko’s, the airline, Holiday Inn, the rental car company, and the organization sponsoring the trade show and get taxpayer identification numbers from them so they can comply with this tax law. The company will then have to send out 1099 forms to each of these vendors and dozens, hundreds or thousands more vendors, depending upon the size of the company, thus adding significant compliance costs to every business in America. Everyone from a company’s accountant, to building supplier, to carpet cleaner to janitorial service will be trading 1099 forms.

Yes, that’s right, trading 1099 forms, because at the same time, Joe’s Plumbing will also be receiving 1099 forms from every one of their business customers who spent more than $600 with them over the course of the year, which they will be required to keep and reconcile against their books.

Do you have any wonder why Joe’s Plumbing might be more than a tad bit irritated? The new Obama health care takeover just took a guy with a pipe wrench, pvc pipe and a plunger and forced him into Dante’s eighth circle of hell – tracking and filing IRS paperwork.

So, what kind of IRS rules will be put into place to set the framework for how all these tax forms must be filed and stored?

Actually, bombshell number two is that the IRS will not be setting these rules. Instead, those noted tax experts at the U.S. Department of Health and Human Services will be writing and overseeing these tax regulations. Why? Who knows? It is the Alice in Wonderland world of the Obama health care bill.

U.S. Representative Dan Lungren (R-CA) has taken the first steps in alleviating this paperwork chokehold on America’s small business by introducing legislation to repeal this new burden.

Let’s hope that America’s businesses tell their Members of Congress to repeal what Lungren calls the “rat” tax, but what many observers believe should rightfully be called the preparation for the liberal Shangri-la of the VAT tax.

After all, once businesses are tracking every transaction over $600 and filing IRS paperwork on it, how much harder will it be for Congress to just say, add 10% to each bill and send it our way, extending taxation to every level of business unseen to unwary consumers who suddenly just see retail prices rise without knowing the increase is a new, hidden tax.

The requirement goes into effect January 2012. Better get a CPA on retainer. And stock up on toner and paper.

Rick Manning is the Director of Communications for Americans for Limited Government, and the former Public Affairs Chief of Staff for the U.S. Department of Labor.


16 Responses to “Obamacare Legislation Mandates 1099′s For Every And All Business Transactions In Excess of $600!!”

  1. Reina says:

    Yet another reason to be in favor of the Fair Tax, in my opinion. The more complicated government makes the tax laws, the more people need to know there is an alternative, if only we can be organized and strong enough to force our government to do something FOR the people that is AGAINST their own self-interest.

  2. Michael Jon Byers Lubbock Texas says:

    This is a must read for anyone in business.

    Michael Jon Byers Lubbock Texas

  3. July 22: Big Brother Gold Rush : Glenn Beck Vault says:

    [...] measures to track and record everything we do. Today it’s tracking your credit cards and tracking business transactions over $600. It’s all about control. Next step? Control the media. [...]

  4. Legal Sounds says:

    We are a group of volunteers and starting a new project in our neighborhood. Your blog provided us with valuable information to help us get started|.You have done a marvellous job!

  5. Republican Journolist Talking Points for RNC and Tea Party « PunditPawn says:

    [...] Show Obama is bad for business with his business-to-business tax over $600 transactions [...]

  6. Dabooda says:

    This is MUCH worse than a business just having to report purchases over $600; it means EVERY SINGLE PURCHASE must be tracked and matched with a vendor. The business may not know until the end of the year whether they need to file a 1099 for a small vendor. Imagine yourself operating a recycling center, having to collect names, social security numbers and addresses for each guy who sells you a bagful of cans -- and having to check at the end of the year how much you paid out to each person. Recycling businesses, coin shops, pawn shops and more will become EXTINCT. Thousands of other small businesses will die as all businesses will naturally concentrate their purchases with a few large vendors, to reduce their paperwork costs.

  7. Ron says:

    They won't stop until all businesses in the US are dead. The government told electronic and garment manufacturers in the 70's that they had to compete with China, only thing is they made the competition fixed. They force US companies to pay a minimum wage, matching FICA taxes, health benefits and to not pollute the environment and then tell them they have to compete with foreign companies that don't have to play by the same rules... and now we see the result of that, electronics and clothing are dead industries in the US. Our country is being sold out and it won't stop til there is nothing left.

  8. george alltrue says:

    People are stupid and won't scream loud enought to get anything done about it until they get it shoved down their throat and choke on it. How much have you heard of this on CNBC the supposed "business" channel? Zilch.
    Lets have a %15 VAT tax ! Wait, listen further. Only on purchases over $100 so the "regressive Tax" the left likes to complain about is off the table. Few or no exemptions on this. ALSO have a 5% tax on ALL wholesale transactions, let the companies pass it on or buy CD's to offset. DO AWAY WITH THE PAYROLL TAX AND INCOME TAX for those families making less than 10 times the Federal poverty level. Do away with CHILD TAX CREDITS over $500 and cap it at $1000 per household regardless of the number of kids. ELIMINATE capitol gains taxes on the first %50,000 and cap it at 20% for the balance, cap corporate taxes at 50% of the average of the G-10 nations and greatly reduce business exemptions except for capitol expenses and other "Growth" spending and cap depreciation tables at 3 years or less.
    Finally, and I know you all hate to hear this, institute Medicare for All (national health care)
    I am sick of paying for everthing while i have to listen to the tea party idiots complain about government takeover of health care ( obama plan sucks, I agree) when THEY mostly get GOVERNMENT SUBSIDY for their health care because they don't pay the taxes due on the value they get from their employee health plan. Most of these fools get at least a $2,500 or better subsidy, while as a small business owner i pay for everthing and get ZERO from uncle Sam. So, teaparty folks, shut up as I am the one paying the subsidy on YOUR health care.

  9. Carolyn says:

    Ron is right remember the independent gas stations owners who were required to dig up their underground tanks and install double lined ones it cost so much money and took so much time to complete they went out of business. Also small business required to report transactions $600. or more
    is a snow storm of paper work, they won' have time to conduct business. All of theses things are designed to eliminate small business and after that is completed the government will go after the big business so they will become government owned just like China and Russia.

  10. Trent says:

    Honestly yes its bs that it creates more paperwork but seriously there are a lot of ppl that under claim when its tax season since its all in cash!!! Not only are they stripping money from our government they are taking it from us, our kids, states cant afford to support schools anymore, espically in wisconsin. You want your kids to be in sports here you have to be in a bigger city because small towns just cant afford it. How is this hurting anyone!!!! Get over the fact you need to actually be truthful for once and start supporting the county instead of finding loopholes which on multiple forums ive seen talked about. Damn it I pay all my taxes for the money i make and ill be damned if some guy isnt. GET OVER IT!!

  11. Backlash grows against full-body airport scanners - Page 42 - Stormfront says:

    [...] on its way to becoming the new USSR. This latest news about controlling packages as well as that of transactions over $600 being reported to the IRS is absolutely insane. How many still think they're living in a free [...]

  12. IRS Closes Online Sellers Income Tax Loophole | Voip Secrets Blog says:

    [...] their income. However, this new tax seems a bit onerous. Though not as onerous as another new 1099 requirement – passed as part of Obamacare – that businesses must file 1099 forms with both the IRS [...]

  13. Business Owner says:

    My business plan is simple, don't spend no money after Jan 1st 2011 so
    I don't have to worry about the 1099 forms!

  14. Obamacare Monstrosity « A Voice into the Void says:

    [...] It was not about “fixing” the system.  This bill is loaded with pork and all kinds of unrelated elements that reek of control, loss of privacy and abuse of private citizens by our government.  No wonder [...]

  15. GROUND REPORT – GEORGIA: How Obamacare impacts doctors « says:

    [...] poor.  It was not about “fixing” the system.  This bill is loaded with pork and all kinds of unrelated elementsthat reek of control, loss of privacy [...]

  16. Mirror Tiles says:

    -~: I am very thankful to this topic because it really gives useful information `-"

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