My favorite IRS person, Taxpayer Advocate Nina Olson has issued her annual report to Congress.
In Fiscal Year 2011 Objectives, Olson euphemistically echoes what I and other tax bloggers have been saying more bluntly for months: The new 1099 reporting requirement is crazier than Sandra Bullock’s taste in men.
Here’s the story from WebCPA (emphasis added):
The report… expressed concern that a new reporting requirement contained in the Patient Protection and Affordable Care Act may impose significant compliance burdens on businesses, charities and government agencies.
Beginning in 2012, all businesses, tax-exempt organizations, and federal, state and local government entities will be required to issue Forms 1099 to vendors from whom they purchase goods totaling $600 or more during a calendar year.
According to a Taxpayer Advocate Service (TAS) analysis of 2009 IRS data, about 40 million businesses and other entities will be subject to the new requirement, including roughly 26 million non-farm sole proprietorships, 4 million S corporations, 2 million C corporations, 3 million partnerships, 2 million farming businesses, 1 million charities and other tax-exempt organizations, and more than 100,000 government entities.
… the report expresses concern that the burdens “may turn out to be disproportionate as compared with any resulting improvement in tax compliance.”
Call me naive, but I predict that wiser heads will prevail and this militantly bad idea will be deep-sixed well before it goes into effect in 2012.
Related Posts:
- Repeal the New 1099 Law
- IRS Wants Input on New 1099 Reporting Requirement. Okay, Scrap it!
- I Heart Nina Olson
1 response so far ↓
1 National Small Business Newtork Protests New 1099 Reporting Requirement // Jul 7, 2010 at 9:44 pm
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