Reply #52: Uhhh.. no.

[Milo_Bloom]

First, this hasn't been in effect for a long time now. The current rule does not require you to 1099 any incorporated business (which is the vast VAST majority of businesses) EXCEPT If you pay a lawyer or doctor's corporation directly, then you need to 1099. Not "health insurance payments" it has to be the service provider themselves! So the vast majority of payments that most businesses incur do not require this additional paperwork/step.

Let's put aside that most small businesses DON'T use quickbooks (none of the ones I own do).. even quickbooks doesn't automatically collect EIN's. This requires you to have every company you do business with fill out a W-9 before you can purchase anything.

And no, the 1099's don't just have to be "printed and shipped to the government", they would need to be itemized on a form 1096.

So if you are like me and literally purchase goods from hundreds of different incorporated vendors throughout the year, you are looking at potentially THOUSANDS of pages of additional paperwork (each vendor filling out a W-9, plus having to 1099 that vendor and have that 1099 compiled to a 1096), keep in mind this would all have to coordinated through an accountant, who would get to add about 10 hours to their bill just to compile all this additional paperwork.

So what goes from being a 1 line item deduction (office supplies), which can be quickly calculated from Quicken or Microsoft money (before it vanishes forever in January), becomes an ordeal of collecting W-9's compiling 1099's and further reporting them on a 1096.


What is very sad about this thread is the number of people who live in denial on this stuff and flail defending anything.

Is this in and of itself a reason to or not to vote for anyone? No.

However, it is an example of INCREDIBLY SLOPPY work on the part of the legislatures.