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Costly IRS Mandate Slipped into Health Bill

Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly.

A few wording changes to the tax code’s section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare.

Link below.

Opinions on how this will effect businesses and consumers?


Asked by Anonymous at 10:25 AM on Apr. 28, 2010 in Politics & Current Events

This question is closed.
Answers (20)
  • Oh Lord! What a screwed up mess! This will totally mess with basic accounting for accounts receivable! I keep track of all my sales and report them as income. Now I will be receiving 1099's from all of those I receive more than $600.00 from. I will now have to track EVERY person/entity for total sales in addition to simply tracking the sales...just to make sure I don't get a 1099 that is too much! As for accounts payable, I will get to send Walmart, Office Depot, US Postal Service, the elec company, gas company, insurance company, bank, and a few dozen more 1099's! Oh for the love of God!! What a flipping mess! In addition to this just look at the additional potential for identity theft and fraud...with all those extra social security numbers and tax ID #'s given out!

    What a bunch of MORONS!!!!!!!

    Answer by yourspecialkid at 11:21 AM on Apr. 28, 2010

  • Anonymous

    Answer by Anonymous at 10:26 AM on Apr. 28, 2010


    In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules:

    The 2010 Health Care Act adds “amounts in consideration for property” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(1)) and “gross proceeds” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(2)) to the pre-2010 Health Care Act categories of payments for which an information return to IRS will be required if the $600 aggregate payment threshold is met in a tax year for any one payee. Thus, Congress says that for payments made after 2011, the term “payments” includes gross proceeds paid in consideration for property or services.


    Answer by Anonymous at 10:27 AM on Apr. 28, 2010

  • Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.

    Answer by Anonymous at 10:27 AM on Apr. 28, 2010

  • It will be a nightmare just like most other laws the progressives want to get through or have gotten through. Just imagine all the extra IRS pencil pushers that will be required for this.

    Answer by Carpy at 10:31 AM on Apr. 28, 2010

  • The IRS is mandated to hire a bunch of new workers, but no funds were assigned to pay for it. This will be lovely, come tax time.

    Answer by mancosmomma at 10:33 AM on Apr. 28, 2010

  • Keeping track of all that will be a accounting nightmare.  It will be costly to both businesses and consumers. 


    Answer by Anonymous at 10:44 AM on Apr. 28, 2010

  • We own a small business.


    What about all those friggin' trees!

    Hypocrite Libs............

    Answer by mustbeGRACE at 11:03 AM on Apr. 28, 2010

  • What about all those friggin' trees!

    They only hug the trees when Conservatives are the ones using the reseouces...


    Answer by grlygrlz2 at 11:07 AM on Apr. 28, 2010

  • oops accounts receivable/payable... sorry I am mad!

    Answer by yourspecialkid at 11:22 AM on Apr. 28, 2010