Yep, it was buried in the health care bill.
Any BUSINESS making a payment to another business or an individual must issue a 1099Misc if the cummulative amount paid for the year is $600 or more...includes all purchases except those made to governments or by credit card. Credit cards will be exempt...
I too am a CPA (long retired), so I see this a-Obama-nashun thru a different lens: Opportunity! I foresee all businesses taking the path of least resistance by using a corporate charge card to make all $600-plus purchases, thus obviating the 1099-misc bookkeeping and the reporting nuisance. Credit card service companies like Visa, MasterCard, et al are going to do a land office business. These are market-traded companies. The stocks are a Buy.
Besides, most large companies that buy and sell products, like GE, Target, Home Depot, Sears, Cabelas...make that
all mid- to large companies have captive banks that issue their own charge cards; this is why these retailers are always hitting you up to use their own credit card.
This Obama slow-pitch is the busy-work bailout for the credit card industry. To think that the government is going to insinuate itself into virtually every $600 transaction...well, with half the people filing paperwork and the other half working for government, shuffling the paperwork, this cannot be good. And there is more...
My strategy in going to a gun show is to bring cash and use it as a club. After all, once I hammer down the price of a nice Parker from, say, $10,000 to $5,000, I can't really expect the "feeling pain" seller to take an out-of-state check from a virtual stranger. Cash is the universal solvent. But wait!
The last time I went to my bank to get $5,000 cash, where I have done business for 38 years, and where everyone knows me (town of 600), the teller said, "Sorry, Ed, but I need your driver's license..."
I said, "Huh?"
She explained that homeland security put the onus on all banks to report all "suspicious cash transactions," and the banks, to avoid lawsuits for "profiling," decided to shove it down the fed's throat by determining that every $3,000-plus cash transaction was suspicious and, thus, reportable (with copy of DL), even if the customer was not known to ride a camel.
Thus all $3,000-plus cash withdrawals are reported to the federal government (the $10,000-plus cash reporting is a different issue--money laundering). Is it any wonder that we are on the brink of having all our $600 plus transactions run past federal bureaucrats? And posted on U-Tube? FaceBook? doublegunshop.com? Think I'm kidding?
Isn't this the same federal government that, of late, has 15,000 of its classified national secrets posted on some foreign website that publishes leaked top secret documents. And the guy that hosts the site thumbs his nose at the Obama administration. I guess the CIA was/is too busy reviewing my $5,000 cash transaction.
Things ain't what they used to was. EDM
