Biz - Value Added Tax 1099 Reporting?

Buried in the 2,000+ page Health Care Reform Bill are new reporting requirements for 1099’s that appear to begin to lay a foundation for Value Added Tax reporting.

Currently businesses issue 1099’s to document income and certain securities transactions for individuals and other entities which creates a reporting challenge for the financial services industry. The purpose of the 1099 is to assist the Internal Revenue Service help taxpayers voluntary comply with income tax reporting.



Under the new law, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year.

Not just reporting income, all business purchase payments.

Businesses make lots and lots of purchases.

Hope I am wrong in raising a red flag. Why would the Internal Revenue need this information for current tax compliance? Hopefully the tax attorneys will figure this one out, and soon.

[Credits:
Tax Prof !

Cato !

Instpundit ! ]