Senators, do your job!

Typical politician posturing! I love it!  A group of Democratic senators have asked the IRS to reduce the paperwork burden on prospective rules for 1099 reporting--rules they passed in Congress!  I must defend the IRS here, they are charged with administering the Internal Revenue Code--which Congress legislates.  The IRS doesn't make the laws, Congress (which includes the Senate and the House of Representatives) does.  If you have a problem with the laws, call-email- write your congressman or Senator, or both.

The law in question was passed as part of the health care reform bill this spring.  It requires all businesses, tax-exempt entities, and federal, state and local governments to issue  Forms1099 to anyone from whom they purchase services, rents or goods of $600 or more during a year.  The law in the past has pertained only to services and rents.  The 'goods' requirement will include a small business that purchases office supplies and coffee-room supplies from, say,  Costco during the year that equal or exceed $600.  They will need to get  Forms W-9--so they have the correct name, address and identification number--from all vendors, because who know in January who will exceed the $599 limit in December, and then issue Forms 1099 in the following January. 

This is part of the plan to make sure that all income is reported by taxpayers.