Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.
Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.
This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation. What this means to individuals is that any bullion purchase over $600.00 will have to be recorded on a 1099 - thus monitoring both taxation and movement of precious metals.
This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation. What this means to individuals is that any bullion purchase over $600.00 will have to be recorded on a 1099 - thus monitoring both taxation and movement of precious metals.
People, Socialism is creeping upon us! Get angry about it! Get active! Vote these people out!
Obama: I've never met a tax hike I didn't like. What's next, tax on air we breath? Oh wait, the FDA has determined that co2 is toxic so must be regulated. I only wish I could say I'm surprised.
ReplyDeleteThese nim-rods are fundamentally changing this country. I hope our guys can get in there and change things back around.
ReplyDelete