Surprise move on tax cuts by Obama

[CRedskinsRule]

Originally Posted by mlmpetert

Good summary of the Tax Act:

Congress Resolves Many Tax Issues During Lame Duck Session

It may be a good summary, but it also proves how convoluted the tax code has gotten and why it needs to be burned and started from scratch.

[mlmpetert]

Originally Posted by CRedskinsRule

It may be a good summary, but it also proves how convoluted the tax code has gotten and why it needs to be burned and started from scratch.

Absolutely. Most people cant do their own taxes. Imagine if all credits, deductions, and write offs went away. If there were only like 3 or 4 tiers like 0, 5, 10, and 20% and that was the tax you paid. Life would be so much simplier.

[firstdown]

Originally Posted by CRedskinsRule

It may be a good summary, but it also proves how convoluted the tax code has gotten and why it needs to be burned and started from scratch.

Well they left that new 1099 law in tact and its going to be a nightmare for some businesses.

Quote
Expanded 1099 Requirements
One major tax issue Congress did not resolve was the expanded Form 1099 reporting requirement. Currently, payments to corporations are excepted from the Form 1099 information-reporting requirements. But starting for payments after Dec. 31, 2011, businesses will be required to file an information return for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). This change was made by the Patient Protection and Affordable Care Act (PL 111-148), enacted in March 2010. In addition, in a change made by the Small Business Jobs Act (PL 111-240), taxpayers who receive rental income from property will be required to issue Forms 1099 to service providers for payments of $600 or more during the year, effective for payments made after Dec. 31, 2010.

This law does not hit my business that hard because most of my business is done with the same companies month after month except for a few. My brother in law who has sold his business said if he still had the business he could see them having 2,000 or more 1099's in a given year. Its crazy the burden the government is putting on business.