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New 1099 law.......
 

There is a new law on the books that states that if you purchase $600.00 or more of goods or services from any one provider, you must send them a 1099 in the total amount purchased for the 2011 year. Does this apply if you spend over $600.00 from the USPS through your paypal account for shipping?

This law is completely insane. Even if everyone would comply, how could the IRS process this much paperwork? Of course, we will all have to comply with the law, but my guess is that it will be repealed, or at least modified, before it takes effect.

Or, maybe this is their new jobs creation program. Because both business and government are going to need an army of workers to comply with this new craziness.

This is even worse than the new 1099k law....

From what I read and understood transactions over paypal and similar processors and credit cards won't require you to do so. But yes I agree this rule is freaking ridiculous.

Thank you OBAMACARE! The IRS is going to have to hire like 16,000 more agents just to make sure everyone is in complience with the new healthcare rules and regs. I agree, the amount of new data that is being fed into the system is crazy. And who ends up suffering......US!

Holy crap! Just reading that brings a million mind boggling questions... Forget how they could manage this, because they couldn't possibly in a 1000 years. What is the purpose of such a small number? What is Uncle Sam after here with you poor folks?

I believe it was a provision that was added to help pay for the healthcare bill. Without being political, from strictly a FINANCIAL standpoint, this new law is paid for by a lot of smoke and mirrors, assumptions and wishful thinking. Such as being able to eliminate ONE BILLION dollars a year in medicare fraud. An admirable goal, but is this figure for real, and even if it is, how is it to be eliminated?

Like most plans put forth by politicians, there are very few details. And, as they say, the devil is in the details. I think the assumption in this particular case is there is a lot of unreported income related to the purchase of goods by businesses in this country. But the way they are going about finding it will cost the taxpayers an extra billion dollars to find an extra ten million in revenues.

For the record, I am NOT picking on Obama, ALL politicians are guilty of this. At least here in the USA. I cannot speak for other countries.

Also it was snuck into a 2,300 pages bill... as if anyone read all of that before agreeing :pound:

That was my biggest wow. It would be like assigning a revenue agent to stand in every restaurant and bar to make sure tips are claimed... Costs are far greater than whatever they are after...

Yeah, but if I am going to make an extra $1k by forcing YOU to spend $10k to get me the $1k, then *I* am ahead...