The 1099 Repudiation. A revealing debate over one of Washington’s dumbest ideas. – I haven’t written much about this insane unworkable provision of the ObamaCare law because I never expected it to become reality. Nor have I advised any of our clients to do anything differently in regard to 1099 reporting than they already have been doing.

As is always the case with our bone-headed rulers, when they attempt to fix a problem, they create much larger ones.  The billions of new 1099s would have created the worst identity theft nightmare we have ever seen.  If everyone had to give everyone else their Social Security or other ID numbers, there goes everyone’s privacy out the window. 

It’s just another ridiculous idea to supposedly close the unknowable “Tax Gap.”  As I have explained countless times, nobody really knows how large the tax gap is and all such numbers used by our rulers to justify more power for IRS are just pulled out of their rear ends.  Likewise, any predictions of how much new revenue this insane 1099 rule would create come from that exact same place.