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A provision in the Patient Protection and Affordable Care Act (PPACA)47, enacted in March of this year, added a new information reporting requirement that may present significant administrative challenges to taxpayers and the IRS. In particular, businesses will have to issue Forms 1099 for goods purchased after 2011, regardless of the corporate form of the vendor.48 The Office of the Taxpayer Advocate is concerned that the new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance.
Under prior law, information reporting was required for the purchase of services but was not required for the purchase of goods. A person who made payments in the course of a trade or business to a vendor totaling $600 or more for services or determinable gains inany taxable year was required to furnish an information report to the IRS, with a copy to the vendor. This report, generally a Form 1099-MISC, Miscellaneous Income, sets forth the total amount of the payments as well as the name, address, and taxpayer identifying number (TIN) of the vendor.
24 July 2010
The Health Care Bill Change in 1099 Reporting Requirements Does NOT Target Gold and Silver
On another matter, there is some misinformation creating concern, bordering almost on mild hysteria at times, about a change that was made in the Health care Bill Section 9066 regarding the reporting of sales of over $600.
There are those who say that the purpose of this law is to track the sale of gold and silver.
Originally posted by apacheman
Why would you be using company money to buy gold unless you're a goldsmith or dealer? That's the only reason you'd have to file anything in any case.
If you are buying gold for personal reasons, you use your own money and no report is required. So unless you're playing fast and loose with other rules, or you've been using company funds or business privileges to hide the purchases or avoid taxes, you shouldn't have a problem.
If you want to own gold, just use your own money...simple.
Originally posted by Gmoneycricket
A 1099 only needed for cash deals above 600.00
If a Credit card or debit card is used then no 1099 needs to be issued.
So in a sick way they are saying precious metal = cash!
although I won't get any, since they can seize it anytime they want
like they did in 1933.
$600 Sale? Get Ready for Tax Form
The responsibility for issuing forms kicks in at $600 for coins or bullion – not a very high level and one that has already started sounding alarm bells. It doesn’t matter in what form payment is made, whether cash, check, credit card, or Yap stone money, the $600 threshold applies.
We therefore concluded that in Jan. 1934 the bulk of the [13.9 million ounces] was retained illegally in private hands. - Milton Friedman and Anna Schwartz: "A Monetary History of the United States, 1867-1960". - Link
Small biz applauds 1099 repeal
President Barack Obama last week signed a bill to repeal part of the federal health care reform law that would have required small businesses to file 1099 forms for purchases of $600 or more. - Full Text