You will see this Trojan-horse buried in Obama’s Health Care
bill. The “trade or business” scam of the IRS has been used for years to trap
innocents into thinking they are “engaged in a trade or business”…..when in
reality very few fall under that category of territorial law.
Just wait till you have to fill out a 1099MISC for every
time you fork-over a grand total of $600 per year. It’s coming! Voting won’t
save you….but Nancy Reagan says JUST SAY NO
Senate Expands IRS Form
1099 Reporting Requirement to Include All Rental Property Owners
More than 10 million Americans are in for a rude
awakening in January.
Tuesday, September 28, 2010
Millions of Americans who own rental property are in for a bit of a rude
awakening, beginning in January.
Congress has presented a bill to President Obama that would expand
the IRS Form 1099 reporting requirements set out in the health-care reform law
to include private citizens who own rental property.
The Patient Protection and Affordable Care Act, President
Obama’s health care law, requires
that small businesses file a Form 1099-MISC with the IRS for any goods they
purchase from an outside vendor valued at over $600.
But the new bill, the Small Business Jobs and Credit Act (H.R.
5297), extends the mandate to private individuals who own property from which
they receive rental income. Those people would also now have to fill out
paperwork reporting any expenditure they make on that property valued over $600
for the year.
Section 2101 of the bill accomplishes
this by considering anyone receiving rental income as “engaged in a trade or business.”
The provision is a revenue-raising measure designed to offset
other small business tax incentives and the Small Business Lending Fund Program
created in the bill. It is expected to create about $2.5 billion in revenue,
according to the Joint Committee on Taxation, the nonpartisan body that
determines the budget effects of bills that Congress produces.
Ryan Ellis, tax policy director at the taxpayer advocate group
Americans for Tax Reform (ATR), told CNSNews.com that about 10 million
Americans are in for a rude awakening in just three months, when they have to
begin tracking all of their expenditures related to a rental property.
“There’s 10 million people who don’t know that they’re now
suddenly going to be required to do this,” Ellis said. “They don’t have to
issue them until January 2012 because it’s a 2011 requirement, but they’ve got
to start tracking in January (2011). So I hope their internal accounting is
Writing for ATR, Ellis said, “So imagine that you're renting out your starter condo.
You pay a property manager, a plumber, a repairman, a locksmith, a condo
association, etc. Imagine having to get a taxpayer identification number, order
1099-MISCs from the IRS, fill them out by hand, keep a copy for yourself, send
a copy to each payee (from whom you had to get a tax ID number and other
information), and then finally take your legitimate rental deduction. Then the
IRS finds some hiccup somewhere, and you get audited -- all to placate an
There has been opposition to making small businesses file 1099
statements since the original requirement was included in the health-care
bill. Much of the business community, including the U.S. Chamber of
Commerce, spoke out against the original requirements, valued by the
Joint Committee on Taxation at $17 billion, and the chorus in
favor of repeal grew so loud at one point that some Democrats began to support
repealing the provision.
When Senate Democrats introduced the small business bill,
several amendments were introduced to try to kill the original mandate on
small business -- and its expansion to private individuals contained in
the small business bill.
Ultimately, however, Senate Majority Leader Harry Reid (D-Nev.)
allowed the Senate to vote on only two amendments that would
change the 1099 requirements -- one Republican amendment, sponsored
by Sen. Mike Johanns (R-Neb.) that would have stripped the 1099 requirement
from law, and another supported by the White House that would have kept the
mandates on business and private property owners in place, but raised the
threshold for compliance from $600 to $5,000.
But both failed to gain approval, leaving the original mandate
from the health-care bill in place -- and the newly expanded 1099
burden contained in the small business bill.
Neither Majority Leader Reid and nor House Speaker Nancy Pelosi
(D-Calif.) returned requests for comments by press time.
“Americans are the most gullible people who ever existed in the
world because they tend to support their government instead of their
constitution . . .Americans are too gullible, too uneducated, and too
jingoistic to remain a free people”
Roberts, former Assistant Secretary of the US Treasury…I’m sure upon
seeing all the tax returns Americans “voluntarily comply” to send in to his
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