$600 purchase reporting requirement repealed
Small Biz Applauds 1099 Repeal
By Bruce W. Fraser
Crain's New York Business, New York
Wednesday, April 20, 2011
New York entrepreneurs are breathing a collective sigh of relief after President Barack Obama last week signed a bill to repeal a provision of the federal health care reform law. It would have required small business and real estate owners to file 1099 forms with the government for purchases of $600 or more.
"It's very helpful," said David Vinjamuri, president of ThirdWay Inc., a marketing training company in Manhattan. "My business outsources many functions to freelancers. It's a hassle every year. Not having to track smaller payments and report them relieves me of extra paperwork."
Mr. Obama on April 14 signed H.R. 4, repealing the provision of the Patient Protection and Affordable Care Act. The law was scheduled to take effect in January 2012.
... Dispatch continues below ...
Lewis E. Lehrman on How to Solve the U.S. Debt Problem
Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.
Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.
Lehrman says: "Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."
To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:
Jon Zefi, a principal based in the New York office of tax and financial advisory firm EisnerAmper LLP, said the goal was to remove the tax compliance burden from the reporting requirement on small businesses.
"This is the first significant revocation of the health care reform act," he said. "It would have required every small business and real estate business owner to file a 1099 to the IRS for every vendor to whom they paid more than $600 a year. That's a relatively low threshold."
Many clients were upset over the short implementation time, Mr. Zefi said. "They were calling frequently, wondering when they would have to be compliant with it, when it will take effect."
Nancy Ploeger, president of the Manhattan Chamber of Commerce, said some members wondered why the provision was inserted into the health care bill at all.
"That it was buried in the health care bill was bizarre enough, and then it was yet another burden on the backs of business owners, more paperwork," she said.
"Also, what is the point of it?" she asked. "You issue a 1099 to an outside contractor, which is understood because the government wants to keep track of the income of outside contractors. But any major corporation you're making purchases from already has a reporting requirement."
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1099 Repeal Signed Into Law
From the Northwest Territorial Mint
Federal Way, Washington
Precious metals investors can breathe a collective sigh of relief now that the 1099 repeal has been signed into law.
The controversial Form 1099 tax reporting requirements that were inserted into last year's 2,400-page healthcare legislation have been described by critics as intrusive, burdensome to businesses, and simply un-American.
Enacted as part of the Patient Protection and Affordable Care Act, the Form 1099 tax reporting requirements would have forced all businesses, including precious metals dealers, to issue a Form 1099 for all business transactions of $600 or greater in total.
This small provision has drawn heated protests from gold and silver investors who have been rightfully concerned that the privacy of the American people would be compromised when conducting their own private transactions involving gold and silver with precious metal dealers.
The law would have compelled precious metals dealers to collect personal data on any individual who sold as little as a single ounce of gold and report that information to the IRS. The amount of paperwork required by this legislation would have been crippling. It is estimated that literally hundreds of millions if not billions of additional 1099 reports would need to be filed to the IRS each year.
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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010
VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.
"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
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