Gold Coin Sellers Angered by New Tax Law (1 Viewer)

[ReverendHellh0und]

Gold Coin Sellers Angered by New Tax Law


Gold Coin Dealers Decry New Tax Law - ABC News



Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.

Death by a thousand cuts. Is taxing small businesses like this really what we need right now?

 

[Kernel Sanders]

Yes, along with taxing every single American more and reducing spending. Our decades of deficits are catching up to us.

 

[Deuce]

Death by a thousand cuts. Is taxing small businesses like this really what we need right now?

I can't bring myself to hold much sympathy for people who sell a nearly useless shiny metal for a price far higher than it really deserves.

 

[ReverendHellh0und]

I can't bring myself to hold much sympathy for people who sell a nearly useless shiny metal for a price far higher than it really deserves.

I'll tell that to the buddy on my hockey team who eaks out a middle class living that you think so. :roll:

 

[Thorgasm]

I'll tell that to the buddy on my hockey team who eaks out a middle class living that you think so. :roll:

Glenn Beck is on your hockey team? :lol:

Sorry, I couldn't resist. :mrgreen:

 

[ReverendHellh0und]

Glenn Beck is on your hockey team? :lol:

Sorry, I couldn't resist. :mrgreen:

no he couldn't make the cut.

 

[Aunt Spiker]

To play hockey you have to SEE the puck.

 

[Your Star]

no he couldn't make the cut.

He couldn't see the puck!

Sorry had to do it :lol:

 

[MaggieD]

Death by a thousand cuts. Is taxing small businesses like this really what we need right now?

This isn't taxing small businesses. A 1099 simply reports payments made. This is a loophole closed that is long overdue. Every taxpaying American should be delighted that others who've skirted by under the radar will now be cross-checked. The only thing better than this "good start" legislation would be an automatic withholding on those 1099's of 10%.

 

[danarhea]

no he couldn't make the cut.

He couldn't beat out Rush Limbaugh. That fatass makes the perfect goalie. All he has to do is sit in front of the goal, and nothing gets past. :mrgreen:

 

[Gill]

This isn't taxing small businesses. A 1099 simply reports payments made. This is a loophole closed that is long overdue. Every taxpaying American should be delighted that others who've skirted by under the radar will now be cross-checked. The only thing better than this "good start" legislation would be an automatic withholding on those 1099's of 10%.

It most certainly is. It requires reporting every purchase during the year that totals more than $600. to a vendor. This is going to make a LOT of accountants and the USPS very happy. It will require businesses to send out thousands of 1099s that they previously didn't have to send.

 

[bicycleman]

Death by a thousand cuts. Is taxing small businesses like this really what we need right now?

Yeah, that's really going to help the unemployment roles increase, might even force a lot of small business owners out of a job. A coworker of mine deals in model trains and small pets. He might have to close up shop. Here's another thing to mess up the home gun dealers, too.

 

[MaggieD]

It is NOT a tax on business. It will require more paperwork, but it is NOT a tax. Do you not understand what a 1099 is? It's like a W-2.

Large corporations have been sending out 1099's to businesses for some time now. Many of them, sole proprietorships and individuals, have been getting away with tax evasion for years.

 

[bicycleman]

I can't bring myself to hold much sympathy for people who sell a nearly useless shiny metal for a price far higher than it really deserves.

It's not just about gold sellers. It's going to affect all of the small business owners.

 

[ReverendHellh0und]

It is NOT a tax on business. It will require more paperwork, but it is NOT a tax. Do you not understand what a 1099 is? It's like a W-2.

Large corporations have been sending out 1099's to unincorporated businesses for some time now. It is my understanding this applies to unincorporated businesses -- individuals and sole proprietorships. They've been getting away with tax fraud for years. If you say it applies to every single invoice a company pays, link please.

Read the article. it talks about exactly this and how it will now apply to incorporated small biz.

 

[MaggieD]

Read the article. it talks about exactly this and how it will now apply to incorporated small biz.

You posted B4 I edited mine, as you can see.

 

[ReverendHellh0und]

You posted B4 I edited mine, as you can see.

I still see that perhaps your not getting what's happening here.

 

[bicycleman]

It is NOT a tax on business. It will require more paperwork, but it is NOT a tax. Do you not understand what a 1099 is? It's like a W-2.

Large corporations have been sending out 1099's to unincorporated businesses for some time now. It is my understanding this applies to unincorporated businesses -- individuals and sole proprietorships. They've been getting away with tax fraud for years. If you say it applies to every single invoice a company pays, link please.

Do you think these small business owners have time to fill out all these 1099's for every purchase or sale they make? They are going to have to hire more people, which will cut into their profits, provided they are even making a profit. My friend hardly makes a living at it. If it weren't for his regular job, he'd probably be on welfare. Mom and pop businesses will have to give it up.

 

[Gill]

It is NOT a tax on business. It will require more paperwork, but it is NOT a tax. Do you not understand what a 1099 is? It's like a W-2.

Large corporations have been sending out 1099's to unincorporated businesses for some time now. It is my understanding this applies to unincorporated businesses -- individuals and sole proprietorships. They've been getting away with tax fraud for years. If you say it applies to every single invoice a company pays, link please.

OK, not a tax, but it is an expense and a huge one. It does NOT apply only to unincorporated businesses, it applies to everyone. If your company buys 6 $100 dollar employee appreciation lunches, the caterer must get a 1099. If your company buys $900 in business cards, a 1099 must go out. If your company pays the kid down the street $600 to mow the lawn, a 1099 must go out.

The number of 1099s that must be filled out and sent will increase a thousandfold.

 

[bicycleman]

OK, not a tax, but it is an expense and a huge one. It does NOT apply only to unincorporated businesses, it applies to everyone. If your company buys 6 $100 dollar employee appreciation lunches, the caterer must get a 1099. If your company buys $900 in business cards, a 1099 must go out. If your company pays the kid down the street $600 to mow the lawn, a 1099 must go out.

The number of 1099s that must be filled out and sent will increase a thousandfold.

I wonder how the IRS will be able to keep up with all this extra work? Just hiring peopel won't solve the problem. They have to be trained, first.

 

[MaggieD]

OK, not a tax, but it is an expense and a huge one. It does NOT apply only to unincorporated businesses, it applies to everyone. If your company buys 6 $100 dollar employee appreciation lunches, the caterer must get a 1099. If your company buys $900 in business cards, a 1099 must go out. If your company pays the kid down the street $600 to mow the lawn, a 1099 must go out.

The number of 1099s that must be filled out and sent will increase a thousandfold.

That I can agree with.

The reason coin dealers are so up in arms is that they will have to report paying me $30,000 for the gold I paid $10,000 for right after 9/11. In the past, these transactions were invisible. I could pocket my $20K profit and not pay a dime in taxes on it. They're afraid it will gore their ox. And it will. And it should. That's just one example. Cheating this way is rampant.

This is no different than banks being required to send out 1099's on every piddly little interest payment they make to an account holder; but in their case it can be 25 cents. The gvmt then cross-checks those 1099 interest payments to individual returns to make sure they're reporting them.

@ Reverend -- I respect your postings...like to read them. What am I missing?

 

[ReverendHellh0und]

That I can agree with.

The reason coin dealers are so up in arms is that they will have to report paying me $30,000 for the gold I paid $10,000 for right after 9/11. In the past, these transactions were invisible. I could pocket my $20K profit and not pay a dime in taxes on it. They're afraid it will gore their ox. And it will. And it should. That's just one example. Cheating this way is rampant.

This is no different than banks being required to send out 1099's on every piddly little interest payment they make to an account holder; but in their case it can be 25 cents. The gvmt then cross-checks those 1099 interest payments to individual returns to make sure they're reporting them.

@ Reverend -- I respect your postings...like to read them. What am I missing?

Well, are you still saying that these 1099's are applying only to unicorporated biz? What I am reading is an expansion to incorporated biz..

 

[Gill]

That I can agree with.

The reason coin dealers are so up in arms is that they will have to report paying me $30,000 for the gold I paid $10,000 for right after 9/11. In the past, these transactions were invisible. I could pocket my $20K profit and not pay a dime in taxes on it. They're afraid it will gore their ox. And it will. And it should. That's just one example. Cheating this way is rampant.

@ Reverend -- I respect your postings...like to read them. What am I missing?

NO, the gold dealers are mad because they'll have to send a 1099 to every newly divorced woman and man who brings in all the gold to sell that their ex-spouses gave them.

 

[MaggieD]

@ Gill -- That raises an interesting point, actually. I hadn't thought of that scenerio. I wonder how the gvmt will deal with that issue....? Paid for with after-tax dollars; who ever keeps the receipts for things like that? Will it be treated as an "automatic profit?" Will a person have to provide receipts to show they sold at a loss? Yes, I can see that being a real problem. Hmm.......

Still, overall the legislation (even if it has to be tweaked) will stop scammers in their tracks.

The Reverend said -- Well, are you still saying that these 1099's are applying only to unicorporated biz? What I am reading is an expansion to incorporated biz..

Actually, I had first understood the legislation to mean that 1099's would only have to be issued to sole proprietorships and individuals. When I looked it up just now, it appears it will apply to every payment. One has to be a Philadelphia Lawyer to understand the legaleze. If it applies to every single check over $600 that a company writes, then it is not only onorous on the businesses that have to report it, but impossible to enforce. Are we going to cross-check every single payment Apple receives to make sure they reported it? Can't be done.

 

[Gill]

@ Gill -- That raises an interesting point, actually. I hadn't thought of that scenerio. I wonder how the gvmt will deal with that issue....? Paid for with after-tax dollars; who ever keeps the receipts for things like that? Will it be treated as an "automatic profit?" Will a person have to provide receipts to show they sold at a loss? Yes, I can see that being a real problem. Hmm.......

Still, overall the legislation (even if it has to be tweaked) will stop scammers in their tracks.


Actually, I had first understood the legislation to mean that 1099's would only have to be issued to sole proprietorships and individuals. When I looked it up just now, it appears it will apply to every payment. One has to be a Philadelphia Lawyer to understand the legaleze. If it applies to every single check over $600 that a company writes, then it is not only onorous on the businesses that have to report it, but impossible to enforce. Are we going to cross-check every single payment Apple receives to make sure they reported it? Can't be done.

Between this requirement and health care reform penalties, the IRS will have to double in size. Guess that's one way to help unemployment.