"The Moneychanger" and Defiance of Tax Authorities

RevDrBlimber

Mr. Franklin Sanders of Tennessee has this article on his site: "The Most Dangerous Man in the Mid-South".

http://the-moneychanger.com/answers/the_most_dangerous_man_in_the_mid_south

He defied the federal and state tax authorities, and unsurprisingly lost.

Interesting man, but I would not do business with him because his buy/sell spreads are too great, plus, you can be sure he is on the IRS' radar still, as he doesn't seem to have changed his tune.

How prevalent in the world of precious metals buying and selling is tax defiance? Have many here known coin and bullion dealers getting in trouble with the federal and state tax authorities?

slinc

I'd say tax avoidance is pretty common in the precious metal world. I know if I show up at the couple of local B&M's I frequent with cash there is never any sales tax, And I can't recall ever paying tax at a coin show.

Staircoins

I pay all tax when due (sales/use and income), and collect and remit sales tax on non-exempt sales that I make within my state.

To state otherwise on a public forum would be foolish, IMHO.

RevDrBlimber

It is "discretion" that governs most businesses. Smart business people have good accountants who know how to work in all their deductions and stay legal. A good accountant or book-keeper can do wonders to help a business examine its profits and expenses on a month by month basis.

Accountability is crucial to stamp out fraud. Theoretically when a coin or even pawn business buys any given item, there is a paper trail so that the authorities have something to go on in case it is stolen or fake. Cash can mean no accountability. But coin dealers are the most savvy business people I know and have their own anti-fraud methods.

TwoSides2aCoin

You must have missed THE MEMO

tneig

I didn't think there was any, ANY, such responsibilities when I first bought my first silver. But I've become more aware. Don't like it or agree with it all. But doing what I have to do on the paperwork. Know for sure they will watch more and come after more in the future.

If you ever bought anything on record like apmex, or sold to shop/store that used a receipt or taxed it, you have it on or tied to your record. Are they really going to chase down 20 million citizens that may have bought a few silver coins and what they did with them. Not really.. but above that level, you need to do things correctly and purposely. Whatever that is .. for you.

PS Also, I'm not a anti gov doomsday, but a computer-field guy. I know that every thing you type, when you press Send, is monitored. Every sentence or phrase or term or pattern is searched and scanned, as open internet traffic from the goverment security divisions. I know how they grab the traffic, what they do with it, and what they are likely looking for. So for sure, a big forum like this gets more attention in those scans. Its a matter of profiling and how many flags you get. Then there's the local and state tax and field people.

If a person is definant and sticks it in their face, expect them to act accordingly.
Right or wrong, he put and kept himself and his family in that position for years.

RevDrBlimber

I have very little in the way of accounting skills. Most likely Mr. Sanders is quite sharp in that department though overwrought when it comes to anti-government determination.

I would like to see an article for once in Coin World, The Numismatist or even on online chat sites to help collectors and dealers come into compliance on accounting and other aspects. I never heard a dealer once discuss their methods of taxes, compliance or accounting. When I filed with the state to get my tax ID, I literally had to contact a state representative to get the foot dragging tax worker to send me my tax ID. I just enter goose eggs on a monthly basis because I don't have any customers in the sense where tax needs to be collected.

Many people avoid HR Block and other franchises because of various reports they have heard. In my experience there is a huge variability in honesty/dishonesty among tax professionals, they know all the tricks. The IRS used to be a lot tougher--they even nailed Leon Hendrickson of Silvertowne at one point on tax issues, he was dragged out of the Baltimore show in handcuffs. What a recovery he had! There needs to be a lot more education in this area. Tax filing isn't just about raising revenue for spendthrift governments, it should also be about good record keeping and government and the rest of society having accurate records of gross and net business activity.

derryb

Federal income tax issues can easily be self taught if one reads up on their Schedule C and D filing instructions at their website. Most individuals fare better claiming investment gains/losses in lieu of business gains/losses.