ÆtherCzar has been following the 1099 Mandate for a while now. This provision, slipped into the Health Care Bill, targets small businesses and independent contractors by requiring them to file a 1099 form with the IRS for the cumulative purchases they’ve made from any other individual or business with whom they’ve done more than $600 of business in any year. The compliance cost with this provision would likely exceed any additional revenue obtained by the IRS. The accountant at my business estimated needing to file a couple hundred extra 1099’s when the provision takes effect requiring at least a man day’s effort (“But Will They Cover Mental Health Services for Accountants“).
With gold hovering around $1200/oz, gold dealers are beginning to realize that virtually every purchase they make will require a separate 1099 form sent into the IRS listing the Social Security Number of the person from whom they purchased the gold. One gold dealer cited in the story above estimated that he will be needing to file 10,000 to 20,000 separate 1099 forms. Hat Tip: Matt Drudge.