

IRS starts mopping up Congress's tax-reporting mess - billswift
http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/

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hga
Something significant for the HN crowd:

" _[ SMC Business Councils President Tom ] Henschke foresees another
unintended consequence of the new reporting provisions: that in order to cut
down on tax forms to be filed, businesses will trim the number of vendors they
do business with. "I've actually heard businesses talking about consolidating
their purchases, going from 150, 200 vendors, down to less than 100," he said.
"That will most certainly lead to some small businesses being swept under the
door."

"The [ official IRS ] taxpayer advocate's office shares that concern. "Many
large vendors already have computer systems that can track purchases by
customer. They are likely to advertise that they will track each customer's
total purchases and send them a report at the end of the year that business
customers can use to comply with the Form 1099 filing requirement," the office
wrote in its report. "Small businesses that lack the capacity to track
customer purchases may lose customers, leaving the economy with more large
national vendors and less local competition."_"

One fun bottom line:

" _[T]he Joint Committee on Taxation -- a nonpartisan Congressional committee
that analyzes pending tax legislation -- estimated that it would bring in only
about $2 billion a year in new tax revenue._ "

