Trojan Horse Health Care Bill Unloads Formidable Tax Form BurdenMary Theroux • Monday June 7, 2010 2:00 PM PST •
Businesses—especially small businesses—that have managed to survive the ongoing depression face an even steeper uphill battle as Obama’s regime uncertainty continues to play out. They’ll now have to find the time and money to file an average—for small businesses—more than 200 additional tax forms annually, as explained by CNNMoney “Stealth IRS changes mean millions of new tax forms“:
The massive expansion of requirements for businesses to file 1099 tax forms that was hidden in the 2,409-page health reform bill took many by surprise when it came to light last month. ...
The result: A blizzard of new tax forms that the Internal Revenue Service will begin rolling out next year.
... All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you’re making the payment to—even if it’s a giant retailer like Staples or Best Buy—at the time of the transaction, or else facing IRS penalties.
As Tom Henschke, president of the Pennsylvania-based SMC Business Councils, which was one of the first organizations to call attention to the health care amendment, points out:
“Just with business travel it would include hotels, rental cars. Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day.”
At an estimated half-hour to complete each 1099, this means more than 100 hours of labor for the entrepreneur already doing his or her own books in the evenings or weekends. And with 1099s due to recipients by Jan. 31 each year, small business owners will now have to devote a considerable part of the first of their year doing nothing but 1099s. Adding an additional estimated in excess of $6,000 to the cost of filing a tax return, small businesses will find it even harder to hire or expand.
As champions of the “little guy,” Obama and Pelosi sure look increasingly like Greeks bearing gifts.
HT: Ken Barnes