Thanks to Brian Daugjberg in Longview. He sent me an email this week that served to inform me that there’s a little-known landmine in the recently passed health care bill. You may know what a 1099 form is. It’s what businesses are required to send to contractors, consultants and temporary employees for whom no regular paychecks are issued. It serves to provide a way for the IRS to pick up income that isn’t withheld from a regular paycheck.
Until now, businesses have not had to send 1099s to other incorporated businesses. But the health care law modifies the section of the Internal Revenue code that deals with 1099s and now, I will have to send a 1099 to every vendor on my list from whom I purchase goods or services exceeding $600 per year. All of our customers will have to do the same thing for us.
Do you own a business? Did you know this was in the health care bill? I’ll bet you didn’t.
How much will it cost me to keep track of all of our purchases from all of our vendors and get 1099s sent to the IRS and those vendors by January 31 of every year?
I don’t know.
But I can’t wait to go tell Cathy, my business manager, that this just became an additional part of her job.
And, by the way, if someone can tell me how KTBB sending a 1099 to Office Depot advances the cause of quality, affordable health care for every American, I’ll be glad to listen.
I had no idea this was buried in the 2,000 page health care bill. And on the subject of health care, what’s it going to cost me going forward under the new law?
I don’t know.
But I’m sure not thinking it’s going to cost me less.
This is part of a pattern.
They’re about to pass a 2,000-page “financial overhaul” bill. What’s that going to do to my cost of credit and banking?
I don’t know.
Next up is the energy bill that has come to be called cap and trade. It will run 2,000 pages or more as well. We don’t use as much energy as a lot of businesses but right now I have three transmitters running 24/7 together with the large air conditioners needed to carry the heat away. Am I going to be taxed on that energy under cap and trade? Probably. How much?
I don’t know.
It’s the “I don’t know” that’s stalling the economy.
Business owners, particularly small business owners, have snapped into the fetal position and pulled the covers over their heads.
The uncertainty brought about by Obama’s soaring speeches that lead to 2,000 page bills filled with spiders and snakes (like the 1099 provision in the health care bill) is what’s keeping the American economy stuck in second gear.
If you want to fix the economy, Mr. President, go play golf. Promise to play every day. With you on the links, we business owners will not have to fear the unknown of your next grandiose idea and the economy will grow on its own.
I do not know what this has to do with “healthcare” but it has been a part of the irs ever since I can remember. As far back as 1973, I can remember sending these 1099 forms out to subcontractors when working for my Aunt in her business. Again, I do not know what this has to do with “Healthcare” unless they are saying everyone has to send one out to our healthcare providers and this would be absolutely crazy! I would not consider them subcontractors, but then, who knows with this regime! This is why this so called “healthcare”bill needs to be repealed as soon as possible!!! There are too many underhanded liberty denying clauses in it that undermines our Constitution!
Buy gold and silver, stash some cash. Watch your investments closely. 15% unemployment and DOW 6000 is coming by 2012.
I had heard about this additional 1099 reporting requirement (buried in the so-called Obama health care – health wrecker bill) on talk radio some months ago, but didn’t know it had survived in the final law that was passed. Does this mean a farmer has to fill out this form for the hay, fertilizer, and weed treatment that he purchases for his ranch as well as the fuel for his tractor? Does this mean that I will need to keep track of my family’s food, fuel, and utility purchases and submit 1099 forms for that, too, if this trend continues?
What has happened to our Representative Republic? There should be a general principal that no law can be considered constitutional if it has provisions for which the Representatives in Congress are unaware. Why isn’t the Texas State AG office activated to protect the citizens of Texas against this kind of stupidity, particularly if it is unconstitutional?
I think it is time for the Conservatives in Congress to form their own investigative agency along with the Heritage Foundation and start publishing these abominations before November and yell it from the housetops.
– Tired of Creeping Tyranny and the Nanny State
I always enjoy and appreciate your comments and particularly appreciate this one. As a retired CPA who worked as a corporate controller, I can only say that the new requirements are going to be very burdensome and also very unnecessary!
I have always enjoyed your stations and really enjoy Bill and Jamie! In my opinion, these guys have made sports talk much better than ever!
Keep up the good work.
Charles Rachui