Passage by the Democrats in Congress of the national health care legislation will impact the nation’s coin collectors.
Effective Jan. 1, 2012, the whole system of giving and receiving IRS 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for goods that they sell as well as buy.
The responsibility for issuing forms kicks in at $600 for coins or bullion. It doesn’t matter in what form payment is made, whether cash, check, credit card, or Yap stone money, the $600 threshold applies.
Form 1099 is used to report independent contractor income, income from dividends, income from other things – and is one of the reasons why children receive tax bills for work or labor or services performed.
Section 9006 of the Patient Protection and Affordable Care Act (Public Law 111-148), signed into law by Obama, turns 1099 forms into reporting forms not only for independent contractor’s income – what they have long been used for – but also to show sales, gains and losses on purchases and sales of goods as part of a trade or business.
The section reads (in relevant part) “SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS. (a) IN GENERAL. – Section 6041 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsections:
‘‘(h) APPLICATION TO CORPORATIONS. – Notwithstanding any regulation prescribed by the secretary before the date of the enactment of this subsection, for purposes of this section the term ‘person’ includes any corporation that is not an organization exempt from tax under section 501(a).
The old exemption for corporations is gone!
‘‘(i) REGULATIONS. – The secretary may prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of this section, including rules to prevent duplicative reporting of transactions.’’
(b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS. –
Subsection (a) of section 6041 of the Internal Revenue Code of 1986 is amended –
(1) by inserting ‘‘amounts in consideration for property,’’ after ‘‘wages,’’
(2) by inserting ‘‘gross proceeds,’’ after ‘‘emoluments, or other’’, and
(3) by inserting ‘‘gross proceeds,’’ after ‘‘setting forth the amount of such.’’
The property section means that if Joe American sold a one ounce American Eagle to a dealer a 1099 would have to be issued. The “report” does not measure profit or loss, but it shows activity. Big Brother in action.
We need to get rid of these collectivists in Congress. Our Founding Fathers would roll over in their graves if they could know about this.
In November, vote for anyone except a Democrat!