More on 2009 revenue proposals

✍ Scribed by Caroline D. Strobel

• Book ID: 102297945
• Publisher: John Wiley and Sons
• Year: 2008
• Tongue: English
• Weight: 46 KB
• Volume: 19
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.20439

✦ Synopsis

In the last issue, I began a discussion about the revenue proposals in the president's budget for 2009. Many of these proposals will be enacted into law either as part of a tax bill or attached to other pieces of legislation. All of these proposals have been scored so that the revenue gain or loss from their enactment is known. Some of them will be used to fund additional expenditures that Congress will propose.

EXPAND INFORMATION REPORTING

Generally, compliance increases significantly for payments that a third party reports to the IRS. Currently, payments in excess of $600 made to a trade or business that is not incorporated must be reported on a 1099. In the meantime, the number, types, and complexity of corporations have greatly expanded. The proposal would require 1099 reporting for all payments aggregating $600 or more made to corporations (except a tax-exempt organization) on or after January 1, 2009.

Certain brokers, including brokerage houses, mutual funds, asset managers, and fiduciaries, would be required to report