This Asinine Business About 1099's

This Asinine Business About 1099's

Neal Boortz
July 20, 2010

Were you listening yesterday? I got mad. Really pissed. Now I just wasn't trying to SOUND like I was mad. I was truly ticked off. What did it? Section 9006 of ObamaCare .. that's what did it. Just how much of this big-government crap are we supposed to put up with before we start picking up pitch forks and axe handles and begin a march on our tormentors in Washington?

You do remember Princess Nancy Pelosi telling you that we were going to have to pass ObamaCare before we can find out what's in it, don't you? Maybe she was talking about Section 9006. Hell ... maybe she didn't even know about Section 9006 since it was added by Democrats in the Senate Finance Committee, not any of her House minions.

What's the deal here? Well, you do know what a 1099 form is, don't you? If you make a payment to someone in the course of conducting your trade or business you are supposed to report that payment to the IRS on a 1099 form, with a copy to the person or business to whom you made the payment. The old law was that you didn't have to report payments to a corporation or payments for such things as merchandise, utilities, shipping or other similar transactions.

Well ... that was BO. Before ObamaCare.

Now things are different. Starting in 2012 you'll have to file a 1099 with the IRS for any business, person or entity to whom you make payments in excess of $600 during any taxable year. This, of course, would include anyone you hire to do some minor labor during the year ... but would also include any corporation, no matter how big, to whom you make payments in excess of $600.

How asinine can this get? Well (at the risk of getting all pissed off again) let me just list some of the 1099 forms you, as a businessman large or small, are going to have to prepare and file. I can just set forth a few examples and you will start to get the idea:

You are a manufacturer's representative. You spend your time on the road. Here are some of the 1099 forms you are going to have to file at the end of your tax year:

* Did you spend more than $600 at Embassy Suite hotels during the year? Get the federal tax ID number from Embassy Suites and file that 1099. Oh, and it had better be accurate or you might face penalties.
* How about that Verizon cell phone? More than $600 for the year? Again, get Verizon's tax ID number and file that 1099.
* Did you pay Hertz, Avis or any other car rental company more than six bills for rental cars for the year? Tax ID numbers and 1099s please.
* Oh ... and don't forget those airline tickets. Yup --- a 1099 to AirTran.

Let's say you just operate a little mom and pop grocery store. You employ two additional family members and you're just barely getting by. What does the new ObamaCare mean to you?

* Did you buy more than $600 of Scott paper towels to sell to your customers? 1099 please.
* How about your electricity? More than $600 to the power company? Another tax ID you'll need and another 1099 you'll have to file.

Here are some examples from CNN Money of how completely ridiculous this will become .. if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.

The average small business prepares less than 1099 forms a year under the current law. Estimates are that these same businesses will have to prepare more than 100 under ObamaCare. What's more .. the demand for accuracy, and the punishment for incorrect filings will probably send many of these smaller businesses out there to hire accounting professionals. Just what we need; more tax compliance costs.

This is beyond ridiculous. This is flat-out asinine. This is what you get when you put a bunch of idiot, ignoranus losers into positions of power in Washington. These fools have no idea in the world what it takes to be a small businessman in today's economy --- let alone operate a mid-sized or larger business. They just pass their laws --- almost all of which are designed to do nothing more than grow government and buy votes --- and then sit back to see if anything bad happens.

We have to change this folks. There is no more "wait till the next election." These footstools in Washington are so completely out of control they could very well - probably will - destroy our economy and our country in the process if they aren't sent home at the end of this term. This eternal obsessive quest for more political power at the expense of individual freedom and economic liberty just has to be brought to a halt ... and the voters of this country can do it in November. They can ... but will they?

The Democrats and big-government liberals are counting on right wing passions to subside before election day. They think the great unwashed will go back to their People magazines and their nightly appointment with Entertainment Tonight; go back to their mindless Hollywood celebrity worshipping ceremonies and forget all about those boring politicians in Washington. To a certain extent they're certainly right. Let's just hope that as the time passes between now and November 2nd every day will see another once-detached American become dedicated to ridding our government of these dangerous and destructive pests.

There is a move afoot to repeal this hideous 1099 mandate. Rep. Dan Lungren, a Republican from California, has introduced legislation that would repeal the new 1099 requirements. We'll see if we can get him on the air today.

For those of you who want more details on this. This is a good summary of the changes we are facing.

He really cheapens his arguments with petty name-calling. People who stoop to ad hominem attacks have already lost the debate, regardless of how valid their points are.

It's a blog. When you read a column of his in the newspaper, he doesn't do that.

I've read plenty of stuff from the other side that makes Boortz look like chopped liver.

Btw, Boortz is a Libertarian.

I'd say the same if a liberal pundit said it too.