[Hidden-tech] 1099 law update?

[R. David Murray]

On Mon, 02 May 2011 11:18:00 -0400, David Korpiewski <davidk at cs.umass.edu> wrote:
>    As I'm sure most of you know, there is a "hidden" 1099 law that was 
> put into the health care reform act signed by Obama.   I have heard that 
> anything over 600 dollars purchased with the intent to write off against 
> taxes needs to be 1099'ed back to the store it was purchased from.  So 
> for example buying a laptop computer for 601 dollars from Costco 
> requires that we 1099 Costco at the end of the year.
> 
> I have some questions:
> (1) when do we start having to do this?
> (2) Any good tips and/or software to manage this?
> (3) How does one file a 1099 on their own?
> (4) Is it cumulative? Meaning if I buy a 300 dollar laptop in June and a 
> 302 dollar printer in September, do I still send the 1099?

I'm not an accountant, but from what I understood from the workshop given
by an accountant through the MSBHC, the answer to your last question
is yes.

Which is...really nasty.  I wouldn't want to be Staples, and I would
imagine their prices are going to rise if this stays in effect.

He was of the opinion that this law would get struck down or modified
before we had to file, but who knows for sure.

So...talk to your accountant :)

--David