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| You will have to file a 1099 on virtually EVERY customer you buy from as well as ALL coin dealers and other business suppliers. |
This is not merely proposed – this provision is already law as part of the massive Health Care Reform Act.
This 1099 reporting will include your wholesale transactions since under this new law corporations are no longer exempt. In addition to everyone you do business with from your home location, you will also be filing 1099s on things you purchase over the $600 threshold for coin shows such as hotel stays, car rentals, and even convention extras you purchase directly from the show decorator like carpeting, a safe, etc., once you cross the $600 trigger point. You will not only have to file hundreds (if not thousands) of these forms, you will also have to collect all the required tax ID and other information from every goods and services provider you deal with. As a reminder, a copy of the 1099 must be sent to all customers, businesses and the IRS. AND, if you make mistakes, it is your business that is penalized.
WHY is the government doing this?? The goal is to increase reporting as a way to raise $17 BILLION to help pay for health care reform. According to an article in the Washington Post, “The idea behind the law is simple: Research shows taxpayers do a much better job of reporting taxable income when they know the IRS is receiving information about their transactions.”
ICTA will, of course, be fighting this, andwe are currently working on strategy and coalitions with other national associations. While this is already law, we do have some time to fight before its implementation in January, 2012.
Rep. Dan Lungren (R-CA) has introduced HR 5141 to repeal this new 1099 requirement. His bill needs the support of every member of the House of Representatives.
CONTACTING YOUR MEMBERS OF CONGRESS
IS THE FIRST STEP OF THIS BATTLE!
YOU are Phase One of this fight. As an industry, we need to make sure every Member of Congress is aware of this assault on your small business that was slipped into the giant health care bill. ICTA is actively working to develop our strategy and options for fighting this unreasonable, burdensome reporting requirement. In the meantime, CONTACT YOUR MEMBERS OF CONGRESS, and ask them to sign on to Rep. Lundgren’s bill, HR 5141.
Email, Fax, Call, or Write both of your Senators and your Representative. Feel free to use the sample letters we have drafted below. Once Congress is alerted to the problem by constituents (you!), they’ll have to pay more attention. This is especially urgent now as we approach the important mid-term elections this November.
PLEASE DO THIS NOW – DO NOT WAIT. CONGRESS NEEDS TO HEAR FROM YOU!
Go to www.house.gov and www.senate.gov, to find all contact information.
Here are messages you can cut and paste into your Representative’s and Senators’ email contact options on their individual websites.
For Your Representative:
Subject: Support HR 5141
Please repeal the new IRS Form 1099 requirement found in Section 9006 of Public Law 111-148, the Health Care Reform Act that requires me to issue a tax information reporting form to virtually all of my customers and vendors, including corporations. This will be devastating to my small business.
This new law creates a monumental increase in my paperwork burden. I buy and sell rare coins, currency, precious metals, and collectibles that I purchase for my inventory from hundreds of other dealers as well as from my retail clients. (Other than a few items that can be obtained from the US Mint, these are the only sources of my merchandise.) This new 1099 provision will require me to file hundreds, if not thousands, of these forms. Further, it is not simply a matter of completing the form, but also the work and time involved in obtaining the proper tax identification number and dealing with backup withholding requirements.
In addition, I will be required to obtain confidential tax ID information from my colleagues and customers and also be responsible for safekeeping that confidential data subject to penalties of individual privacy protection laws.
I urge you to co-sponsor HR 5141 to prevent this business and privacy nightmare.
For Your Senators:
Subject: Repeal the New 1099 Burden on Small Businesses
Rep. Dan Lundgren has introduced HR 5141 that will repeal the new Form 1099 requirement found in Section 9006 of Public Law 111-148, the Health Care Reform Act. I am writing to urge you to introduce in the Senate a companion bill to HR 5141.
This new law requires me to issue thisinformation reporting form to virtually all of my customers and vendors, including corporations. It will be devastating for my small business.I buy and sell rare coins, currency, precious metals, and collectibles that I purchase for my inventory from hundreds of other dealers, as well as from my retail clients. (Other than a few items that can be obtained from the US Mint, these are the only sources of my merchandise.) This new 1099 provision will require me to file hundreds, if not thousands, of these forms. Further, it is not simply a matter of completing the form, but also the work and time involved in obtaining the proper tax identification number and dealing with backup withholding requirements.
In addition, I will be required to obtain confidential tax ID information from my colleagues and customers and also be responsible for safekeeping that confidential data.
It is urgent that you introduce in the Senate the companion bill to HR 5141 to prevent this business and privacy nightmare.
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SUCCESS – FINANCIAL REFORM DOES NO HARM
The congressional conference committee on financial reform accepted language favorable to the precious metals industry. This means that the final Financial Regulatory Reform Bill retains the 28-day delivery timeframe for your products; nothing has changed for us!
Thanks to all of you who wrote, called, and emailed your Members of Congress. We also appreciate the work of lobbyists Michael DiRienzo and Paul Bateman of The Klein & Saks Group.
Key to our success was Rep. Collin Peterson (D-MN,7th), Chairman of the House Agriculture Committee, who was one of the conferees. Please take the time to send a thank you to Rep. Peterson for representing our interests. You can use the following as an example or simply cut and paste it into an email. Go to http://collinpeterson.house.gov/, which is Rep. Peterson’s website.
Thank you for standing up for small businesses during the recent conference to finalize the Financial Regulatory Reform Bill. Retaining the time-tested 28-day delivery time frame will enable me to continue to serve my customers who place orders by phone or mail and not limit business to only those within a small geographic area near my shop who can physically come in to do a face-to-face transaction. Thank you for representingthe common sense interests of small businesses and the precious metals industry.
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FROM DON KAGIN – A FUNDRAISER FOR SENATOR BARBARA BOXER
Dear Fellow ICTA Member,
As you know there are many challenges that face the Coin & Bullion Community; including a potential VAT tax, the onerous 1099 tax filing that is part of the new Health Care Reform Act, and restoring US Legal Tender coins as qualified investments for IRAs. We need help from our elected officials to ensure that the rare coin/precious metals community has a strong advocate in Congress. Please accept our invitation to a reception with Barbara Boxer in our home (event details below). Your support will help return this influential three-term senator to Congress and represent your views and those of our industry. Space is limited! Take this opportunity to express your views and be a part of the process. Candace and I look forward to seeing you.
Please Join Don & Candace Kagin for a Reception
To Support the Re-election of U.S. Senator Barbara Boxer
Hosted by Candace and Don Kagin; Co-Hosts Bob and Ink Mendelsohn
Sunday, August 1, 2010, 2:00-4:00 PM, Tiburon, California.
Wine and hors d’oeuvres served. Address provided upon RSVP.
SUGGESTED CONTRIBUTION
$250 Individual ** $500 Sponsor ** $,1000 Patron ** $2,400 Co-Chair
Please RSVP to
Senator Boxer’s Assistant, Alice Engstrom, at 415-413-0240 x103; alice@integratedfundraising.com OR
To Lena in Don’s office at 415-381-9654; lena@kagins.com
If you cannot attend the fundraiser but would like to make a contribution, please contact Alice or Lena for further information.
Your contribution is not tax-deductible as a charitable contribution
for Federal income tax purposes.
An individual may contribute up to $2,400 for the general election. A multi-candidate PAC may contribute up to $5,000 for the general election. Individual contributions must be made from the donor's own funds. We cannot accept contributions from corporations, labor unions, foreign nationals, and federal government contractors.
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