Quote:
Originally Posted by m21sniper
So basically any time one spends $600 for something, they need to 1099 it, is that what i'm getting?
Ie, go buy a widescreen TV, and the CONSUMER has to send a 1099 to the store he bought it at, AND to the IRS?
Yeah....that'll work.
|
No!
This will not affect consumers, just business. It's still very bad though. Currently, businesses must issue a 1099 to all contractor/service work that exceeds $600 in a year. Companies do not have to 1099 corporations for service work.
The new law will still only affect companies but 1099's will have to be issued to
all companies (including corproations) that you spend more than $600 with. It won't matter if you are purchasing a service (like restaurants may hire a band), of if you are purchasing copy paper.
The original intent of 1099's is to reduce under-the-table payments to workers.
This will have no effect on the ordinary consumer - EXCEPT prices will eventually rise as companies must pay for all the additional useless accounting burden.