"We have to pass the bill before we can see what is in it." When Nancy Pelosi proudly blurted those words out we were all too appalled. Now that we are learning all the hidden little items that were installed in the giant bill were overlooked by many House members. The great unjustice this government has passed on to us and our children can not be taken lightly. We were promised from day one of Obama's administration we would not see an increase in taxes. Obamacare was not supposed to add any more taxes on us. All I can see is no end to the taxation this administration is imposing on us.
With most of the country already in an uproar over Obamacare or properly named the Patient Protection and Affordable Care Act, here is one more hidden addendum for us to beware of; Section 9006 of the Act is bringing more resentment for this bill and this Socialistic, Communistic administration.
We all know buying and selling gold has been an action many investors have taken recently in this recession. When they sell their precious metals, they will receive a 1099 form from the buyer. Taxes will be charged to the seller based on the selling price!
The following are excerpts from and abc article
Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.
This new tax code will bring in an estimated $17 billion in revenue.
Coin dealers are in an outrage over this action, as they buy precious metals and coins from other dealers and the public. If a dealer purchases more than $600 in gold from an individual he will have to issue a 1099 Form to the buyer.
Liberty coin Service deals with about 1,000 customers per week say Pat Heller (owner). He estimates he will have to hire 2 full time employees to do nothing but handle the paper work for an estimated 10 to 20 thousand tax forms that will have to be filed with the IRS. This will definitely cut into his profits.
The office of the National Taxpayer Advocate, a citizen's ombudsman within the IRS, issued a report June 30 that said the new rule "may present significant administrative challenges to taxpayers and the IRS."
CNN's article, Health care law's massive, hidden tax change is very informative. Businesses will be swamped with an excess of tax paper work.
Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.
But under the new rules, 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.
Where tangible goods were exempt from this law, now they will be subject to IRS rules and require 1099s issued to not only individuals , but corporations as well.
Be careful folks Big Brother is arriving. They are forcing us to leave a paper trail that will travel from the poor individual trying to make a living to the large corporations. The small business man will suffer the most, as he more than likely does not have the knowledge to understand this or the means to hire a full time accountant to take care of these matters.
We own a mobile home park and if I interpret what I have read, each tenant will be responsible for sending me a 1099 at the end of the year, if we receive more than $600 from them. The same applies to the very small water utility company we own. We will be flooded with the burden of handling a lot more paperwork. I also do not like the idea of giving my private information to a bunch of tenants I may evict sometime during the year.
I am also under the understanding if I have a giant garage sale and someone offers me $700 for the entire lot he will be required to send me a 1099 form for junk I no longer need.
This being the case it is imposing a double tax on many items. If I buy a $2000 piece of equipment and the economy goes down; I have to sell it for $1000, I will have to pay tax again on it.People want to know "What this has to do with the health care bill and why weren't we told of this earlier?" The only way I can answer this question is you have Obama, Pelosi, Reid and the other Liberals who say they are representing you while lies continue to be their agenda to thank!
I am not an tax accountant, so I could be wrong in my interpretation.
Let me know how you interpret this?