FutureOfCapitalism.com reader Frederick Van Bennekom writes:
In my business, I run workshops that are typically paid for with credit cards. Because of the dollar amount, I typically get a 1099 from the customer's company. My credit card processor, Elavon, just requested a W9 from me due to a new requirement for them to report my sales to the IRS.
This will lead to double counting on the 1099s. If I sell $50,000 of workshops in a year, the IRS may now get 1099s for $100,000. We all know that the 1099 income reported to the IRS should not exceed the revenue we claim on our taxes. In my business with this new reporting, I will almost certainly have 1099 income exceed my revenue. Thus, I'll likely be flagged for audit -- because the geniuses in Congress don't understand how businesses function. The saving grace may be that a lot of people will be in my situation, overtaxing -- pun intended -- the IRS auditors.