New tax reporting rules leave IRS to mop up Congress's mess - Jul. 9, 2010
Quote(NEW YORK (CNNMoney.com) -- With a new mandate looming that will require business owners to file millions more tax forms, the Internal Revenue Service has begun the daunting process of figuring out how to turn the law's sweeping demands into actual rules for taxpayers.
The new regulations, which kick in at the start of 2012, require any taxpayer with business income to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services that year. That promises to launch a fusillade of new paperwork: An estimated 40 million taxpayers will be subject to the requirement, including 26 million who run sole proprietorships, according to a report released this week by National Taxpayer Advocate Nina Olson.
Olson's office, which operates independently within the IRS, flagged the new reporting requirements as one of its priority issues for the next year. Like many who have delved into the details of the new rules, Olson is concerned about their far-reaching scope and potential unintended consequences.)
Not exactly what any business wants to hear from any administration.
True it will compel businesses to (in some instances) hire workers, but those workers will presumably be filling in the extra paperwork.
I have to wonder whether with all the increased costs to every business, whether there will be any increase in Tax revenue to the IRS as well as whether more businesses will simply say they cannot afford more government control and close down.