The was (and is) broadscale opposition to the Patriot Act provisions that let Feds listen in to phone chats. But, not much whining about the Feds getting their hands on all of our health and financial records.
ObamaCare gives the Feds access to individual health records (though they promise they won’t do anything ontoward with them) ,,, and the new Financial Reform ductates more detailed accounting of financial transactions.
And, oh yeah, there’ll be 15,000 more IRS agents …
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Excerpted from cnnMoney.com: Stealth IRS changes mean millions of new tax forms, May 21, 2010
The 1099 is a catch-all series of IRS documents used to report non-wage income from a variety of sources like contract work, dividends, earned interest and pension distributions.
There’s massive expansion of requirements for businesses to file 1099 tax forms that was hidden in the 2,409-page health reform bill, but it’s just one piece of a years-long legislative stealth campaign to create ways for the federal government to track down unreported income and close the so-called “tax gap”.
The federal government loses an estimated $300 billion each year from the “tax gap” between what individuals and businesses owe and what they actually pay.
A new 1099-K aims to shine a light on a currently hard-to-track payment stream: credit cards.
Starting in 2011, financial firms that process credit or debit card payments will be required to send their clients, and the IRS, an annual form documenting the year’s transactions. It applies to all payment processors, including Paypal, Amazon.com, and others that service very small businesses.
The 1099 changes attached to the health care reform bill massively expand the requirements for filing the “1099-Misc” form, which companies use for recording payments to freelance workers and other individual service providers.
Until now, payments to corporations have been exempt from 1099 rules, as have payments for the purchase of goods.
Starting in 2012, all business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing.
In essence, the 1099-Misc is having its role changed from a form for tracking off-payroll employment to one that must accompany virtually any sizeable business transaction.
Full article:
http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm
