August 13, 2010

Repeal the new 1099 Rule

Will Congress repeal the new 1099 rule that forces everyone to fill out a 1099 form for buying $600 worth of anything?

The Taxpayer Advocate, an independent watchdog group within the IRS, worries enforcement of the rule will overburden the agency and possibly cost as much money as it collects. It's skeptical the law will achieve its intended goal of reducing tax fraud.

Democrats tacked this new rule onto the ObamaCare bill, saying it would save the country $19 million in tax fraud, but even the IRS says it will cost them more to process all the forms than they'll ever uncover in tax fraud.  Everyone agrees the new rule should be repealed, but the Republicans want to repeal the whole Health Care Bill, not little pieces of it, and Democrats are afraid a repeal of the new rule will add to the every-growing price tag of ObamaCare.

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