IRS & Your Coins

Unfortunately, that's what the corporations have done and have gotten away with, leaving the American worker with nothing to build the American Dream. I say unfortunately because it is up to the government to regulate businesses, so that this does not happen. This is done by not allowing corporation to move offshore, while still having unfettered access to US markets.

Having studied capitalism in business school, I know that capitalism is the most productive system in the world. Yet unfortunately, over time, it concentrates wealth in fewer and fewer hands, until you have what we had in the US in the early 1900's - the Rockefellers, Carnegies, and a few others owned everything and took advantage of workers and consumers. Hence the rise of regulations, to level the playing field. So, the idea is in America, if you're smart and work hard, you can have more than others - but, you don't get to own it all, leaving nothing for the small guy to work for. This ain't Monopoly.

As for the wealthy leaving, they've already moved their money offshore. And, you know, the bottom line is we'll get by without them. America will rebuild, through hopefully, minimal regulation, but it will happen. I think that old saying, "America, love it or leave", is equally appropriate today.

 

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How is it "getting away with". Should the companies be forced to do business here? edited
What would you do? I have read people on this forum that have left states because of a state's tax's, jobs, cola...should they not be allowed to move too?

 

It's this kind of entitlement thinking that has put this country into the toilet. Like it's Companys' responsibilities to ensure "the American worker" has a job... it's their responsibility that Americans' have 'something' "to build the American Dream." ... It is NOT their responsibility! Companies are not welfare institutions.

And it is exactly this kind of thinking as to why the tax code of this country keeps getting 'toyed' with edited

Duke - I had to bite my tongue when I read his statement.

 

Like has been said, this is getting political and I think we're supposed to avoid this in CT. We clearly have the two opposing political views here, so we should just agree to disagree and move on to the OP's question.
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Okay, what was the OP's question?

 

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You can never equate tax policy with common sense. The above doesn't make sense which is probably why it's the interpretation the bureaucrats will use.

Now anybody who pays more than $600/yr will probably be presumed to be a business so get that TIN from your Electric Company so you can report payment for your ELECTRICITY Bill on a 1099-MISC.

 

Barter is also taxable, but rarely reported, so you're just violating a law that is rarely prosecuted.

 

Not every law I agree with. I believe it's wrong to murder people but if I want to trade some gold coins for a tractor then that's my business. All I"m asking the government to do is keep out an invasion (they've failed at that a few times since our nation's founding). Everything else, forget about it and leave me alone.

 

Actually, it's not so rare to see unreported bartering prosecuted. The IRS has conducted projects and may currently have ongoing efforts to identify unreported bartering. Usually, when they win an unreported bartering case, you'll read about it in the paper, kinda puts a fear in those thinking they're getting away with something and causes many to start reporting the income from bartering.

 

It is important to play by the rules when it comes to taxes. I seriously doubt the IRS has the manpower, the computers, or the will to pursue those buying and selling rare coins or bullion. They don't generally know basis. As has been pointed out, if you are driving a Rolls Royce and living in palatial spendor with a wife that looks like a Sports Illustrated model, you cannot be declaring a less than upper class income. The IRS is not impressed by five and six figure incomes unless something jumps out in terms of anomolies or surprizes. The state DRS has active programs however and can make an example of people who try to avoid taxes. I have met a number of people at coin shows who have had tax troubles, whose ex-wife turned them in or who moved to Florida thinking it would be a good tax haven state. One self-employed fellow said he called up the IRS to complain about the torture he was being put through. "You're making my life miserable", he said. "That's how I get out of this cubicle", said the IRS worker.

Keep all your records, as I do, so that if you get called for an audit you have a sufficient defense. Here in the Constitution State, where Irwin Schiff worked as an insurance salesman before trying to sell the "zero" income return to countless thousands of tax protestors and ending up in federal prison for the rest of his life, the state and federal government is particularly tough. Just check out the US Attorney website for this and your own state to see all the people nailed for tax issues.

 

A relevant article from Franklin Saunders, "The Money Changer", may be of interest for those who are not aware of his trouble with the tax authorities:

http://the-moneychanger.com/dangerous.phtml

 

Putting precious metals in an IRA or in a Bank Safety Deposit Box defeats the purpose of buying precious metals. You're taking the most private investment there is and exposing it to the very institutions want to keep track of how much we're making so they can tax us. Buying precious metals is a way at beating them at their own game, unless you're flashing it around, telling everyone what you have ( i.e. putting them in an IRA or keeping them at the bank).

 

Plenty to Think About

Thanks everyone for your imput,
I read everyones comments regarding all the many ways this can all be construed. At the end of the day we really cant be sure about taking a specific path toward guarding our collection assets as the codes are changing. I suppose it will all come down to what the tax codes say when (you) or me come around to sell time. I still remain concerned about the $600 transaction level involking reporting requirements. That of course could be one lone morgan.

Steve

 

"A relevant article from Franklin Saunders, "The Money Changer", may be of interest for those who are not aware of his trouble with the tax authorities:

http://the-moneychanger.com/dangerous.phtml"
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What a nightmare! Very interesting reading.

As much as I side with the dealer in the article I think what might be fair is for gold / silver coins the face value of the coin is tax free then any money above face value is taxable.

Don't shoot the messenger.

 

As for the issue of federal income tax, the guy in the link really messed up claiming there is no federal income tax return fling requirement.
IRC § 6012(a)(1) imposes the requirement to file a federal income tax return on individuals. it reads as follows:
26 U.S.C. § 6012 : US Code - Section 6012: Persons required to make returns of income

(a) General rule
Returns with respect to income taxes under subtitle A shall be
made by the following:
(1)(A) Every individual having for the taxable year gross
income which equals or exceeds the exemption amount

 

It's unclear to me how the defendant generated any income. Clearly he did generate income but he was vague on that unless I missed it.