New $600 threashold for government reporting?

CaptHenway · May 3, 2010 3:13AM

See Roadrunner's comment in the thread on the investigation into silver manipulation, then check his link reproduced here:

link

Sounds scary to me. Anybody have more info on it?

TD

gecko109 · May 3, 2010 3:18AM

Linky no worky.

But in regards to this new proposal (as well as the possible VAT), im thinking it may be a good time to start pushing for a much more fair flat tax. My wife and I paid a combined $19,000 in federal tax for 2009 (yes, thats the number AFTER I deducted our refund) and I just did not use more services than Joe Shmoe who paid $3,000 in federal tax. In fact, I probably used less (we qualify for absolutely ZERO government aid on anything). Its almost becoming criminal, the tax system in this country. National defense and upkeep of infrastucture are the ONLY 2 things our taxes should be spent on. Anything other than those 2 items, and its now simply a redistribution of wealth!

CaptHenway · May 3, 2010 3:20AM

fixed

sumrtym · May 3, 2010 3:43AM

<< Linky no worky.

But in regards to this new proposal (as well as the possible VAT), im thinking it may be a good time to start pushing for a much more fair flat tax. My wife and I paid a combined $19,000 in federal tax for 2009 (yes, thats the number AFTER I deducted our refund) and I just did not use more services than Joe Shmoe who paid $3,000 in federal tax. In fact, I probably used less (we qualify for absolutely ZERO government aid on anything). Its almost becoming criminal, the tax system in this country. National defense and upkeep of infrastucture are the ONLY 2 things our taxes should be spent on. Anything other than those 2 items, and its now simply a redistribution of wealth! >>

So, no libraries, no schools, no National Parks, etc eh? All the while spending more than the next 15 top defense spending countries in the world combined. Tell ya what, let's cut that in half and see if anybody invades.

timcoin · May 3, 2010 5:03AM

My on topic/off topic response.

Fair Tax The only way we can all be treated as equals...tax consumption. That way, everyone pays taxes, including the drug dealer and white-collar crooks! It allows parents to be thrifty and save for the child's education. It allows people to save more during their "productive years" without hurting them during their retirement years. It is completely superior to our current tax system, and the money saved by not having such a large IRS alone is reason enough to change our tax code to the fair tax.

jmski52 · May 3, 2010 5:23AM

If you buy a riding lawnmower at Home Depot, they will have to get a 1099 from you. Same thing for a used car, or anything else costing $600. What better way to put the crimp on a citizenry than to track any and every transaction via computer and then data-mine it. Can you say Big Brother? Even Orwell didn't go this far in 1984 - Big Brother's draconian control of every nuance of daily life only applied to Party Members as the proles didn't really matter in the scheme of things.

gecko109 · May 3, 2010 5:30AM

"So, no libraries, no schools, no National Parks, etc eh? All the while spending more than the next 15 top defense spending countries in the world combined. Tell ya what, let's cut that in half and see if anybody invades."

What part of the word "infrastructure" baffles you so much?

GoldLuvr · May 3, 2010 5:37AM

how much gold could somebody buy without being reported to the Honduran goverment?

gecko109 · May 3, 2010 5:38AM

<< how much gold could somebody buy without being reported to the Honduran goverment? >>

217.72 kilos....any more than that and you need to report it.

roadrunner · May 3, 2010 6:25AM

If you buy a riding lawnmower at Home Depot, they will have to get a 1099 from you. Same thing for a used car, or anything else costing $600. What better way to put the crimp on a citizenry than to track any and every transaction via computer and then data-mine it. Can you say Big Brother? Even Orwell didn't go this far in 1984 - Big Brother's draconian control of every nuance of daily life only applied to Party Members as the proles didn't really matter in the scheme of things.

Every coin or hobby transaction >$600 would have to be reported. If you can't produce a document on what you paid, you'll owe tax on up to the full amount. Just from the coin business alone millions of 1099's would flood the IRS. If one ever decides to sell their PM stash "secretly" they'd have to do it in $600 increments using a different buyer for every transaction because the $600/yr requirement would be cumulative. So if you had $20,000 in metal to discretely dispose of for example, you'd need to find no less than 33 dealers to do business with. And of course you couldn't sell anything 1/2 oz or larger as it would exceed the $600 benchmark. Looks like silver bullion and 1/10 oz ounce gold coins will get a lot more popular under this proposal. Of course it may all be for naught as your bank would see 33 x $600 transactions and probably flag your account as a money launderer.

If one ever wondered why there is only $700 BILL or so in cash circulating in the US.....now you know one possible reason. This current proposal was slipped into the Health Care Bill.

roadrunner

MrOrganic · May 3, 2010 6:27AM

Our dollars are the only thing they will listen to.

Buy used
starve the beast

Baley · May 3, 2010 8:31AM

Fair Tax The only way we can all be treated as equals...tax consumption. That way, everyone pays taxes, including the drug dealer and white-collar crooks! It allows parents to be thrifty and save for the child's education. It allows people to save more during their "productive years" without hurting them during their retirement years. It is completely superior to our current tax system, and the money saved by not having such a large IRS alone is reason enough to change our tax code to the fair tax.

Ah, but then you'd have a different set of problems... what would we do with all the unemployed accountants, tax lawyers, and IRS agents?

All those people want the tax code MORE complicated, not less.

derryb · May 3, 2010 12:43PM

Maybe we will shove so much paperwork down their throats they will finally choke.

CaptHenway · May 3, 2010 12:58PM

IF this is a real problem (ICTA is looking into it), then Gecko's stash of quarter eagles is looking pretty gol-darn smart right now.....

gecko109 · May 3, 2010 1:05PM

<< IF this is a real problem (ICTA is looking into it), then Gecko's stash of quarter eagles is looking pretty gol-darn smart right now.....

>>

Only until gold hits $2400

Wait a sec, gold eagles? Gold eagles? I dont have no stinking gold eagles!!!

sinin1 · May 3, 2010 2:18PM

yep gecko those gold foil covered chocolate candies don't count

consumption tax is great idea,

but what about those people who don't want to / can't work

and who is going to pay for their health care insurance, and their smokes?

jmski52 · May 3, 2010 4:17PM

I just saw a very scary ad produced by the State of Pennsylvania about tax collection. It was highly disturbing and implied that they can find out everything about you as they zero in on your house from google earth and lay claim to everything that you own if you haven't paid all of your taxes. It's supposed to be about a tax amnesty program. Uh-huh. Now, all they need is to change the tax code a few more times.

1jester · May 3, 2010 5:55PM

Sounds like another compelling reason to become an ex-pat. I guess our public servants are biting the hand (and arms, legs, etc) of those that feed them.

renman95 · May 3, 2010 10:19PM

Now we know why Health Care requires 16,000 more IRS agents.

DrBuster · May 3, 2010 10:45PM

Barter, black market, non-bank cash transactions....the future is looking gangsta fun to me!!

mhammerman · May 3, 2010 10:56PM

"...non-bank cash transactions"

Got Cash?

DrBuster · May 3, 2010 11:12PM

<< "...non-bank cash transactions"

Got Cash? >>

Always have cash, rarely use plastic.

Weiss · May 3, 2010 11:31PM

I gave Gecko props when he first announced it. Now he looks even smarter.

I may have a roll or two of 1/4 eagles in my future...

sinin1 · May 3, 2010 11:47PM

so if I buy $600 of anything from an eBay seller during
the 12 months during a year, I need to get their tax info and send a 1099?

as well as one to eBay and PAYPAL (for fees )

and my CC company and bank if there is $600 in fees

DrBuster · May 3, 2010 11:50PM

<< so if I buy $600 of anything from an eBay seller during
the 12 months during a year, I need to get their tax info and send a 1099?

as well as one to eBay and PAYPAL (for fees )

and my CC company and bank if there is $600 in fees >>

I believe that's how it will work, yeah.

EagleEye · May 4, 2010 5:54AM

IRS chart on reporting

I think the poster you are referencing is misreading the filing requirements. It is on income, not gross transaction amounts.

If you don't get your information from a tax attorney, I wouldn't trust it. Would you?

jmski52 · May 4, 2010 6:05AM

If you don't get your information from a tax attorney, I wouldn't trust it. Would you?

Depends on what I'm trying to learn. Cato Institute is well-qualified to analyze and report on the impacts of the Healthcare Bill. The IRS schedule you listed is almost a year old and probably doesn't reflect what was to become law in the future. A tax attorney can always research the law and issue an opinion, but there's no guarantee that the IRS will always agree with your tax attorney either.

gecko109 · May 4, 2010 11:04PM

<< I gave Gecko props when he first announced it. Now he looks even smarter.

I may have a roll or two of 1/4 eagles in my future...

>>

Even a blind squirrel finds a nut once in awhile.

But in all honesty, I had no knowledge of this proposal when I did my conversion. It was based solely on 3 easy principles. Have gold that I can actually touch (no plastic to ruin the sensation). Have gold in a divisible form such that most typical people could afford to buy a piece without any real financial considerations. And finally, from the OCD side of me, have some uniformity in my stack.

RGJohn · May 13, 2010 3:40AM

<< 

<< so if I buy $600 of anything from an eBay seller during
the 12 months during a year, I need to get their tax info and send a 1099?

as well as one to eBay and PAYPAL (for fees )

and my CC company and bank if there is $600 in fees >>

I believe that's how it will work, yeah. >>

But, if this debt were to be paid (provided the respective parties both so agreed) with a First Spouse gold coin (1/2 ounce pure gold), each of which was issued by the U.S. Mint and denominated as representing $10.00 (ten dollars) in lawful U.S. Currency, would it the transaction then still be reportable?

DrBuster · May 13, 2010 3:52AM

<< 

<< 

<< so if I buy $600 of anything from an eBay seller during
the 12 months during a year, I need to get their tax info and send a 1099?

as well as one to eBay and PAYPAL (for fees )

and my CC company and bank if there is $600 in fees >>

I believe that's how it will work, yeah. >>

But, if this debt were to be paid (provided the respective parties both so agreed) with a First Spouse gold coin (1/2 ounce pure gold), each of which was issued by the U.S. Mint and denominated as representing $10.00 (ten dollars) in lawful U.S. Currency, would it the transaction then still be reportable? >>

Didn't some company out in Vegas get in trouble for doing exactly this a few years ago, paying employees in gold and reporting face value?

AboutAg · May 13, 2010 4:08AM

<< But, if this debt were to be paid (provided the respective parties both so agreed) with a First Spouse gold coin (1/2 ounce pure gold), each of which was issued by the U.S. Mint and denominated as representing $10.00 (ten dollars) in lawful U.S. Currency, would it the transaction then still be reportable? >>

For income tax purposes, the IRS makes it clear that they won't fall for that (provided, of course, that they are aware of what is going on). It is considered frivolous to file a tax return using the denomination of gold/silver coins, rather than the actual worth. And frivolous includes a very non-frivolous penalty (I believe it starts at $5,000).

New $600 threashold for government reporting?

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