“Many Democrats have joined Republicans in pushing for the repeal of a tax provision in the new health care law that imposes a huge information-reporting burden on small businesses.

“To improve compliance, the law requires businesses to file a 1099 tax form identifying anyone to whom they pay $600 or more for goods or merchandise in a year. Businesses will also have to send copies of the form to their vendors, suppliers and contractors.

“Businesses denounce the requirement, and even the national taxpayer advocate at the Internal Revenue Service, Nina E. Olson, said the reporting burden might ‘turn out to be disproportionate as compared with any resulting improvement in tax compliance.’”

http://www.nytimes.com/2010/09/12/health/policy/12health.html

Crazy, and seems illogical. I can’t imagine the resources required to enforce this each year…

Danielle: The way I understand it is the $600 minimum is a total spent with one business for the tax year. Meaning, ten $60 purchases at Staples would require a 1099.

Thanks for the heads up Jeff.
Systems now set for DefCon 5

When I send apple a 1099 for buying a mac? Apple already pays taxes on my income.. are they just trying to better track that I spent money? Seems like an odd honor system.

I think the IRS should just have our bank account access so that they can just taxes us ever year with out forms, I think it would help a lot. and its green because we would save a lot of paper!