The tax man cometh...

Originally Posted by markem

This is at the end of the article. I tend to agree with the sentiments expressed. I will note that I will be subject to the additional requirements, but they aren't that much, at least for me.

"The buzz on the internet is that this will create mounds of unnecessary paperwork for small businesses across the country. It is true that the number of 1099s will increase significantly, however, I see two positive implications of these changes. First, it will force business owners to keep better records, report income more accurately, and pay the proper amount of taxes. Second, will also cut back on fraudulent business deductions, which will ease the burden on the IRS to catch tax cheats and, hopefully, save the rest of us honest taxpayers the hassles associated with overbearing IRS scrutiny. The work involved in issuing 1099s to your vendors and processing the 1099s you receive will not be overbearing. Think of it as high school math class – you don’t get an A without showing your work."

I disagree with that assessment. It is not the extra work that worries me inasmuch as the new information the IRS will be gleaning. As a business owner, I don't need to be worrying about what the IRS will think of my purchases this year. Or how that information might be used against me some day by an IRS auditor.

We are giving them more power, in an area where they haven't proven a single good reason why they need it. And that power is often impossible to repeal. Shame on the lawmakers who put this in without at least giving it a proper debate.