IRS & Your Coins

perhaps the only intelligent post in this whole mess

 

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Thank You.

 

You guys see this? Forgive me if it's already been posted......


http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=11843

 

Thank you green18

green18;
For the life of me I couldnt remember where I had heard it. But there you have it! Thanks for the link.

Steve

 

GDJSMP,
So you dont agree with David L. Ganz, from Numismatic News, he has a whole different spin then you, and I am hoping for my sake your right about this.

Steve

 

Ouch! That made my head hurt...

Life would be so much simpler if we taxed "money spent" rather than "money earned". :thumb:

That would mean you would pay taxes when buying coins...but not when selling them. It would be up to the seller to collect/pay the tax. I could live with that.

 

Folks, I mentioned all of this a month ago to the forum... if not earlier in an even earlier post... If you ever plan on selling, or if already a declared business as a dealer...

See: http://www.cointalk.com/t110617/#post903680

 

Doug, the way that this new law is written is entirely different than the way we use the 1099 forms today.

What has happened is that effective Jan. 1, 2012, the whole system of giving and receiving Internal Revenue Service 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for coins and other goods that they sell as well as buy.

This means that if you sell a dealer a coin or coins and receive 600.00 he HAS to according to this law 1099 you.. Dealer to Dealer business will be the same way.. Anything over 600 gets a 1099.. I spoke with my accountant and lawyer about this very thing yesterday.. Both say the same thing.. HOLD ON... its gonna get nasty.. This includes if you read the law, services.. SO, you hire a company to build you a deck.. guess what.. You hire a guy to cut a tree down...guess what... You buy a 1909SVDB, guess what.. I want to buy stock in the printers who will be printing 1099 forms.. The entire 1099 law is different now.. it not only applies to subs as Doug has said but to individuals as well. (H.R. 5141) Look it up gang...

 

uh oh...

 

All this paperwork is just INSANE!! :goof:

 

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=11843

 

As the article suggests...the purpose is to track "activity" rather than profit or loss. It's just another example of the tax code being used as a law enforcement tool...something it was never intended to do.

These jokers are gonna get what's coming to them this November...a big, fat unemployment check! :hammer:

 

IMO it is precursor requirements to implementing a VAT (value added tax). The 1099 trail mimics and is procedurally/functionally similar to what will be required for implementation of a VAT.

 

I remember that post but couldn't find the blasted thing this afternoon......:smile

 

As long as a good faith effort is made the government will probably not bother you. They want paperwork, give them paperwork. They have limited resources to sift through all the data to try and find discrepancies. Eventually they will get the computers to know exactly how much to bill the taxpayer. If you ever go to Canada, you will see how thorough regulation is. Not much tax evasion in that country, they are even tougher in enforcement than the US. What we need is a government that is thoroughly accountable to "we the people", and workers who are not paid outlandish wages and benefits.

I spoke with a tax attorney at the Baltimore show recently who said that the $600 reporting rule has always been the law just rarely enforced. On the statement that taxes were never designed as a basis for criminal action, I can think of a lot of reasons why the government should have this tool, not just Al Capone and his ilk. I have known some non-filers who were much in need of such action.

 

On the statement that taxes were never designed as a basis for criminal action, I can think of a lot of reasons why the government should have this tool, not just Al Capone and his ilk. I have known some non-filers who were much in need of such action.[/QUOTE]


http://www.newstimes.com/default/article/Danbury-strip-club-owner-gets-18-months-for-tax-502821.php

http://quatloosia.blogspot.com/

 

The tax attorney is right, there has always been the requirement to report paying out $600 or more. It has been only enforced towards companies since they are much easier to audit the papertrail.

Bottom line, yes, the IRS will have the information that you received cash for coin sales. If they audit you they will have the ability to pull this data out and ask to see your receipts to prove what your profit was. By the way, any profit on coin sales by anyone has always been taxable, but rarely could it be enforced since there was no papertrail.

This is part of the of the IRS trying to close what the call the "tax gap", taxes the government is due but currently not collecting. I was part of a US Treasury panel and the IRS Commissioner talked about this subject frequently.

 

Watch what you say here guys. We're being recorded.......:smile

 

Indeed, same guidance I have consistently received from my tax accountant; and re-discussed pursuant to the recent legislation.

Hence my statement in earlier posts:

Also, mind you, too, guidance pursuant to transactions equal to $600 or more - and multiple sales equaling or totaling to more than $600 - in each calendar year with any entity. Which means, basically, attain and retain every piece of paperwork pursuant to both purchases and sales.