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Proposed 1099 Amendment response from my senator
donthehill
Posts: 139 ✭✭✭
Sent a letter to my senator asking why he voted against the amendment to eliminate the $600 limit for filing 1099s in transactions. Thought you might "enjoy" his response.
Thank you for contacting me regarding a provision in the Patient Protection and Affordable Care Act (PPACA). I appreciate your taking the time to write and share your ideas.
As you may know, there is a requirement scheduled to take effect in 2011 for businesses to file a Form 1099 with the IRS for goods purchases. It is one of the tax measures enacted to provide financing for health care reform and ensure that the health care reform bill does not increase the size of our nation's budget deficit. Firms are already required to report payments to any unincorporated business that provides services costing over $600 per year, and this legislation expands the reporting to goods.
I have heard from many New Mexico businesses about this requirement, and while I understand your concerns, I also strongly support reasonable efforts to close the tax gap. The tax gap is a considerable problem in this country, and deprives the Department of Treasury of about $350 billion annually. Most businesses accurately report income, but when a few understate their income or overstate their deductions, it raises the tax burden on all Americans, who must make up the difference.
It is important to note that the IRS has already said it intends to issue guidance that implements this requirement "in a manner that minimizes burden and avoids duplicative reporting." For instance, the IRS proposed allowing a broad exception for many purchases made with credit cards since they already receive information about those purchases from other disclosures. The IRS has also solicited comments from the business community on how to implement this requirement in a minimally intrusive manner. If you are interested in submitting comments, I encourage you to visit http://www.irs.gov/newsroom/article/0,,id=225029,00.html.
Nevertheless, I am aware of the potential burden this places on small businesses. For this reason, I voted for a measure that would have exempted businesses with fewer than 25 employees and, for larger businesses, would have increased the payments threshold from $600 to $5,000. Unfortunately, this legislation was blocked in the Senate on September 14, 2010. I will continue to work with my colleagues to identify a solution that will balance the need to ensure tax compliance with the importance of ensuring that small businesses are not inappropriately subjected to reporting requirements.
As a member of the Senate Finance Committee, please be assured I will keep your comments in mind as I continue to work on legislation that helps small businesses in New Mexico, and across the country.
Again, thank you for writing. I hope you will continue to keep me informed of issues of importance to you and your community.
Sincerely,
JEFF BINGAMAN
United States Senator
Thank you for contacting me regarding a provision in the Patient Protection and Affordable Care Act (PPACA). I appreciate your taking the time to write and share your ideas.
As you may know, there is a requirement scheduled to take effect in 2011 for businesses to file a Form 1099 with the IRS for goods purchases. It is one of the tax measures enacted to provide financing for health care reform and ensure that the health care reform bill does not increase the size of our nation's budget deficit. Firms are already required to report payments to any unincorporated business that provides services costing over $600 per year, and this legislation expands the reporting to goods.
I have heard from many New Mexico businesses about this requirement, and while I understand your concerns, I also strongly support reasonable efforts to close the tax gap. The tax gap is a considerable problem in this country, and deprives the Department of Treasury of about $350 billion annually. Most businesses accurately report income, but when a few understate their income or overstate their deductions, it raises the tax burden on all Americans, who must make up the difference.
It is important to note that the IRS has already said it intends to issue guidance that implements this requirement "in a manner that minimizes burden and avoids duplicative reporting." For instance, the IRS proposed allowing a broad exception for many purchases made with credit cards since they already receive information about those purchases from other disclosures. The IRS has also solicited comments from the business community on how to implement this requirement in a minimally intrusive manner. If you are interested in submitting comments, I encourage you to visit http://www.irs.gov/newsroom/article/0,,id=225029,00.html.
Nevertheless, I am aware of the potential burden this places on small businesses. For this reason, I voted for a measure that would have exempted businesses with fewer than 25 employees and, for larger businesses, would have increased the payments threshold from $600 to $5,000. Unfortunately, this legislation was blocked in the Senate on September 14, 2010. I will continue to work with my colleagues to identify a solution that will balance the need to ensure tax compliance with the importance of ensuring that small businesses are not inappropriately subjected to reporting requirements.
As a member of the Senate Finance Committee, please be assured I will keep your comments in mind as I continue to work on legislation that helps small businesses in New Mexico, and across the country.
Again, thank you for writing. I hope you will continue to keep me informed of issues of importance to you and your community.
Sincerely,
JEFF BINGAMAN
United States Senator
0
Comments
<< <i>Nevertheless, I am aware of the potential burden this places on small businesses. For this reason, I voted for a measure that would have exempted businesses with fewer than 25 employees and, for larger businesses, would have increased the payments threshold from $600 to $5,000. Unfortunately, this legislation was blocked in the Senate on September 14, 2010. I will continue to work with my colleagues to identify a solution that will balance the need to ensure tax compliance with the importance of ensuring that small businesses are not inappropriately subjected to reporting requirements. >>
How would the issuer of the 1099 form know if the recipient of the 1099 has less than 25 employees? This is a laughable suggestion.
Changing the payment threshold to $5000 for ALL businesses AND ALSO INDEXING THAT AMOUNT TO INFLATION in future years would be a better alternative.
Corporations by the very nature of the fact that they cannot cash checks received should continue to be exempt.
the White House's BS.
bob
PS: get a new Senator
edited to add: About 5 or 6 years ago my wife and I had a heated argument regarding our
Senator (Harry Reed) and decided to end the argument diplomatically by writing letters to him
and awaiting the response (will prove one of us right).
Dear Harry, Please support the Nuclear Waste at Yucca Mountain, signed: Linda
Dear Harry, Please eliminate the Nuclear Waste at Yucca Mountain, signed: Bob
Response: Dear (Bob or Linda makes no difference): I support your position and will fight
valiantly to this end. If you care to help this cause please see the link below to donate funds
to fight this fight! Sincerely, Harry Reed, D, NV
Hmmmmm, I think we and all Nevadans lost out on this one! Needless to say Dump Harry is our credo now.
I don't know why they put hard numbers in laws, then don't index them to inflation. 30 years from now, $600 will effectively be a "send them to everyone" order.
<< <i>Your frigg'n Senator has got to be a Democrat and is just reiterating
the White House's BS.
bob
PS: get a new Senator
edited to add: About 5 or 6 years ago my wife and I had a heated argument regarding our
Senator (Harry Reed) and decided to end the argument diplomatically by writing letters to him
and awaiting the response (will prove one of us right).
Dear Harry, Please support the Nuclear Waste at Yucca Mountain, signed: Linda
Dear Harry, Please eliminate the Nuclear Waste at Yucca Mountain, signed: Bob
Response: Dear (Bob or Linda makes no difference): I support your position and will fight
valiantly to this end. If you care to help this cause please see the link below to donate funds
to fight this fight! Sincerely, Harry Reed, D, NV
Hmmmmm, I think we and all Nevadans lost out on this one! Needless to say Dump Harry is our credo now. >>
Talk about tragic-comedy
Lance.
Edit: Jeremy is right. Political post removed.
Ed. S.
(EJS)
Here is the response from one of my Senators in response to my e-mail on this specific issue:
Thank you for contacting me about reforming Wall Street. I appreciate hearing your thoughts on this matter of critical importance.
As you know, unregulated greed on Wall Street nearly brought down the entire economy back in 2008. The fallout from this crisis still haunts us today: retirement accounts have plunged in value, small businesses can't get the credit they need, and tens of thousands of Minnesotans are still out of work. For over 50 years, we had a relatively stable banking system thanks to the protections Congress put in place following the Great Depression. During the past few decades, however, big banks have whittled away at these protections. New rules are needed to protect consumers and our nation's economy.
That's why I supported and voted for legislation to reform Wall Street by:
Creating a strong Bureau of Consumer Financial Protection that will for the first time pull harmful loans and mortgages off the market;
Requiring big financial firms to write their own "living wills", detailing how they can be dissolved without a taxpayer bailout;
Bringing exotic financial products like derivatives out of the shadows and forcing them through clearinghouses or onto regulated exchanges.
I'm especially proud of an amendment I offered during the Senate debate to target conflicts of interest plaguing credit rating agencies. As you may know, credit rating agencies played a significant role in the financial meltdown. They routinely gave the highest ratings possible to financial products that were clearly risky. Of all the sub-prime mortgage-backed securities issued in 2006 and 2007 that received triple-A ratings, over 90% have since been downgraded to junk status. Unfortunately, the inflated ratings led pension funds and other investors to purchase these risky securities.
This happened because banks and other issuers of securities choose and pay credit rating agencies to rate their financial products. Banks would shop around for an agency willing to give their products the highest ratings. My amendment ends this conflict of interest by creating a private and independent board designed to assign each issuer to the rating agency that will give an initial rating. The more accurate a rating agency is, the more work it would get under this system. Consequently, credit rating agencies will have the incentive to be more accurate, not just give arbitrarily inflated ratings.
My amendment passed with broad bipartisan support by a vote of 64-35. The Senate and the House of Representatives are currently working to merge their bills in a conference committee.
I will be working hard to make sure that my amendment is included in the final legislation.
Again, thank you for contacting me, and please don't hesitate to do so in the future regarding this or any other matter of concern to you.
Sincerely,
Al Franken
United States Senator
the IRS proposed allowing a broad exception for many purchases made with credit cards since they already receive information about those purchases from other disclosures.
Harry & Al Got To Go is the Credo...!
Currently Listed: Nothing
Take Care, Dave
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
These guys don't even know 1/10 of what is in a bill as they rely on their flunkies to do that.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
<< <i>Do you actually think that the reply was from your actual senator and not from one of his flunkies?
These guys don't even know 1/10 of what is in a bill as they rely on their flunkies to do that. >>
Shouldn't a politician be held responsible for the contents of a form letter distributed by his staff?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Your frigg'n Senator has got to be a Democrat and is just reiterating
the White House's BS.
bob
PS: get a new Senator
edited to add: About 5 or 6 years ago my wife and I had a heated argument regarding our
Senator (Harry Reed) and decided to end the argument diplomatically by writing letters to him
and awaiting the response (will prove one of us right).
Dear Harry, Please support the Nuclear Waste at Yucca Mountain, signed: Linda
Dear Harry, Please eliminate the Nuclear Waste at Yucca Mountain, signed: Bob
Response: Dear (Bob or Linda makes no difference): I support your position and will fight
valiantly to this end. If you care to help this cause please see the link below to donate funds
to fight this fight! Sincerely, Harry Reed, D, NV
Hmmmmm, I think we and all Nevadans lost out on this one! Needless to say Dump Harry is our credo now. >>
Dingy Harry at his finest, eh?
<< <i>Interesting part there about the IRS already being told where you spend with credit cards. >>
And that is why CASH IS KING
Paying a credit card company or Bank for the convenience to reach in ones wallet or purse
to grab a piece of plastic.
When it is just as convenient to reach in ones wallet or purse and grab your Cash
Do you actually think that the reply was from your actual senator and not from one of his flunkies
Exactly. I told folks here before you are wasting your time writing to anyone’s political office. The volume of mail received cannot, I repeat cannot, be answered in a reasonable amount of time. Therefore staffers prepare the written statements which are now signed by electronic auto scroll pens.
Now how the heck do I know this??? I have worked in multiple states with federally elected members on both sides of the political divide. It is a well known fact that only persons of importance get a personal response. All other response letters are drafted with varying degrees of edit to meet the first responses that come in and generally they are refined as the issue continues to be a hot topic. Again, how do I know this? If the issues being written about had to do with the installation I managed, I worked side by side with the staffers to compose the letters! And believe me this was the same standard operating procedure for any federal agency they were working with. Write a letter to the White House about your mistreatment by the VA or IRS, and that letter goes directly to the federal agency for a response. It’s called “Controlled Correspondence” and given a tracking number and time required to respond by and any special instructions based on the tempo of the letter. That is to say it may be written for a Senators signature, or you may be told to respond on his behalf only make sure you send a copy for his office files. And yes, that includes Email request as well.
Long ago the only way writing your Congressman or Senator meant anything is by the sheer volume of mail received on a given topic. But even that has become watered down these days with sophisticated writing campaigns, that are planned by lobbyist but in a more secretive manner by using a front person’s agencies, offices, etc., who unbeknownst to them become the puppet for the lobbyist message. You see if a subject got a huge number of office calls and letters, than any subject that gets say half the volume, may not be regarded as important. Thus my message is simple, stick to your coins and drop the idea that you are”special” when it comes to your elected officials.
WS
<< <i>Bingaman, a 27 yr rank-and-file Democrat, is just lining up behind the Whitehouse. His letter spews the same drivel about this new law helping reduce the deficit and finance the new health care law. What a pile.
Lance. >>
+1
And Al Franken is a dolt too.
<< <i>I'll go out on a limb here - seems like a good reply.
the IRS proposed allowing a broad exception for many purchases made with credit cards since they already receive information about those purchases from other disclosures.
If you lived in New Mexico you would know what a bunch of B.S. that response is.
WS
I disagree. Voter apathy is exactly how we got here. If letter-writing isn't the way, find a way. Looks like lots of people are active this time around, and that's a good thing.
I knew it would happen.
<< <i>Your frigg'n Senator has got to be a Democrat and is just reiterating
the White House's BS.
bob
PS: get a new Senator
>>
My thoughts exactly.
The answer to the tax gap is spend less!
<< <i>Sent a letter to my senator asking why he voted against the amendment to eliminate the $600 limit for filing 1099s in transactions. Thought you might "enjoy" his response.
Thank you for contacting me regarding a provision in the Patient Protection and Affordable Care Act (PPACA). I appreciate your taking the time to write and share your ideas.
As you may know, there is a requirement scheduled to take effect in 2011 for businesses to file a Form 1099 with the IRS for goods purchases. It is one of the tax measures enacted to provide financing for health care reform and ensure that the health care reform bill does not increase the size of our nation's budget deficit. Firms are already required to report payments to any unincorporated business that provides services costing over $600 per year, and this legislation expands the reporting to goods.
I have heard from many New Mexico businesses about this requirement, and while I understand your concerns, I also strongly support reasonable efforts to close the tax gap. The tax gap is a considerable problem in this country, and deprives the Department of Treasury of about $350 billion annually. Most businesses accurately report income, but when a few understate their income or overstate their deductions, it raises the tax burden on all Americans, who must make up the difference.
It is important to note that the IRS has already said it intends to issue guidance that implements this requirement "in a manner that minimizes burden and avoids duplicative reporting." For instance, the IRS proposed allowing a broad exception for many purchases made with credit cards since they already receive information about those purchases from other disclosures. The IRS has also solicited comments from the business community on how to implement this requirement in a minimally intrusive manner. If you are interested in submitting comments, I encourage you to visit http://www.irs.gov/newsroom/article/0,,id=225029,00.html.
Nevertheless, I am aware of the potential burden this places on small businesses. For this reason, I voted for a measure that would have exempted businesses with fewer than 25 employees and, for larger businesses, would have increased the payments threshold from $600 to $5,000. Unfortunately, this legislation was blocked in the Senate on September 14, 2010. I will continue to work with my colleagues to identify a solution that will balance the need to ensure tax compliance with the importance of ensuring that small businesses are not inappropriately subjected to reporting requirements.
As a member of the Senate Finance Committee, please be assured I will keep your comments in mind as I continue to work on legislation that helps small businesses in New Mexico, and across the country.
Again, thank you for writing. I hope you will continue to keep me informed of issues of importance to you and your community.
Sincerely,
JEFF BINGAMAN
United States Senator >>
Please avtivate your PM function and contact me.
Thank you.
TD
The tax gap issue is serious, and I weep when I read that people will "use cash" as a way to get around these rules (which is why we have a tax gap in the first place).
As an aside, just this past week, I ordered firewood from some guy in town. On the phone, he gave me two prices-- one for cash in an envelope, and another for a check. Just in principle, I wrote him a check.
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
<< <i>
<< <i>Do you actually think that the reply was from your actual senator and not from one of his flunkies?
These guys don't even know 1/10 of what is in a bill as they rely on their flunkies to do that. >>
Shouldn't a politician be held responsible for the contents of a form letter distributed by his staff? >>
That response has nothing to do with what I wrote. I didn't say they should, or should not, be held responsible.
I said that it likely isn't the senator/politician themself responding to the letter. I also said that for most bills they vote on, they don't do the work on it themselves to learn what is in it.
Nothing else was said.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Most of the posters here have a problem with the 1099 requirement because of the personal identity and administrative cost overhead issues, not as a tax avoidance move. As one at the highest levels of tax theory & practice in the country, does Longacre somehow deny that these issues are significant for those who are engulfed in humdrum of daily business and investment transactions?
I would question the whole validity of this "tax gap" idea and would suggest that government funding should be cut, rather than expanded (which is the real purpose in any discussion of the tax gap). This could start immediately by not spending the remaining "stimulus" funds. Tax gap, indeed.
I knew it would happen.
<< <i>The most honest political reply is, "Just shut up and pay your taxes!". >>
Or, I don't care if you shut up or not. Just pay your taxes please.
I knew it would happen.
Questions of tax policy are not directly related to US coins. But then again, I am not a moderator....
Does it apply to dental gold as well?
I knew it would happen.
We could have representatives trying to put in place legislation
Like what they are trying in England
This is going to crack you up with what they are trying to do.
U.K Proposes all Paychecks go to the State First(Can You Believe it)
<< <i>I note that your recent comments do not follow protocol.
Does it apply to dental gold as well? >>
You are right. I am guilty as charged. After the lockdown of the Carr threads, I thought it right to start paying more attention to Rule #6. In that spirit, I will leave this subject alone and follow Rule #6.
Bingham, hhhmmmm, where have I heard that name?
<< <i>It could be incredibly worse though
We could have representatives trying to put in place legislation
Like what they are trying in England
This is going to crack you up with what they are trying to do.
U.K Proposes all Paychecks go to the State First(Can You Believe it) >>
This is insane, and vastly scary!!!!!
TD
<< <i>Hey, you at least got a coherent response. I received a form letter from my House Rep telling me how happy she was to be representing me, and how hard she worked. I heard nothing from my Senator.
Bingham, hhhmmmm, where have I heard that name?
I take it your donations to their campaigns has been zero?
Send them $100 minimum every year and they might even take your call. It's NOT the money, it's visible "skin in the game", that random loons that call 50-60 times a day doesn't have. Your name is actually on a list and you WILL get a letter in response to your call.