IRS & Your Coins

This new law is going to radically change how dealers do business. With at least thirty years of buying/trading coins w/ dealers at shows and in their local shops I've gotten probably six receipts total without asking for one. However, at the Whitman show in Baltimore a couple weeks ago I made two separate currency purchases, each time at least six different bills. from a dealer who gave a receipt each time. Good selection and prices but limited Irish currency.
I'll post his name when I find one of the receipts.

 

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If the law is not changed, 1099's will be required by the mint for (assuming today's PM prices hold) any gold or platinum purchases totaling 1/2 ounce or higher aggregated for an entire calendar year.

Another concern is that paying for anything (used car, bedroom furniture set, etc.) with cash will require that you give the seller your social security number. Talk about a way to invite identity theft... .

I am in the process of writing my member of Congress and both Senators to ask for the repeal of the recently added 1099 reporting provision. I suggest that all other CTers do the same. Hearing from constituents can cause elected officials to change things.

 

hehe...I got Steny Hoyer on speed-dial!

 

"...Hearing from constituents can cause elected officials to change things..."

I don't like being a cynic but I've become one: On the national level the only thing I know that makes elected officials change anything is deep pocketed lobbyists. (see the financial bill) Last time I checked I didn't see any lobbyists for citizens in DC. Ralph Nader doesn't count anymore because he spends most of his time on the lecture circuit. You should see some of nonsensical replies I've received from Congress Person Babs Mikulski re: national issues.
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Mikulski's an idiot...but I get the same canned replies from Hoyer's office, too. I'm sure I'm not making a dent, but feel obligated to keep trying.

 

Since this format doesn't have any reference to who you're responding to, it would help for you to name the intended recipient. Almost anything could be construed to be political if you are offended easily.

 

I think he's talking to all of us. I try to keep my comments apolitical. I'm against both parties when it comes to the way we collect taxes. I agree with paying taxes...it's the method with which I disagree.

I would consider myself a Conservative Democrat...but the only candidate that supports an substative change to the tax code is Mike Huckabee...so he has my vote. :hail: (I sincerely hope my comments don't offend).

 

I have a call into my CPA to confirm, but I believe his guidance was that for the average Joe & Jane "consumer", such purchases don't apply.

 

Mike's too busy takin' the "band" on the road........

 

It's funny how entertainers want to be politicians and politicians want to be entertainers.

 

The wording is “Payments of $600 or more: All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, amounts in consideration for property, premiums, …”

If you sell anything to a business or an entity that can be construed as a business by the IRS (e.g., any eBay buyer with many hundreds of sales), a 1099 will have to be filed by the buyer (and within 2 weeks of the transaction), no matter what your status is.

 

This is why I like trading. Most dealers at the shows I attend like trading also. Example: I traded a damaged/corroded 1936 Proof Buffalo nickel ANACS MS60 details for a 1986 NGC MS69 quarter oz. AGE. No money involved. The dealer was happy and even knew where he could sell it. I was happy getting $300 worth of gold for a problem coin.

 

This is what I just sent my congressman and senator. Feel free to use any part of it if you want to let your elected representative(s) know your displeasure with the $600 reporting requirement.
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Dear XXXXXX

I am concerned to the recent changes in subsection A of section 6041 of the Internal Revenue Code that were passed as part of the comprehensive health care bill.

This will require 1099 reporting of all “Payments of $600 or more: All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, amounts in consideration for property, premiums, …” (item highlighted in red as one of the changes to subsection A).

As I understand this, it will require anyone engaged in a business, no matter how small and buys an item for $600 or more to file a 1099 form. The implication is that the seller will be required to supply the buyer with sufficient information to file the 1099. My reading of this is that I will now be required to give my social security number whenever I sell something for more than $600 whether or not payment is by cash, check, etc. For the amounts involved, this is a truly stupid idea and needs to be repealed. I can see the requirement for reporting large amounts of cash to prevent money laundering, etc, but at the $600 level, this seems to be massive overkill.

In addition, the reporting requirements on the individual and on small business will be overwhelming. The small business that I worked for had hundreds of vendors. Under this provision, they will now be required to generate hundreds of 1099s, creating additional costs that will result in lower profit margins and subsequently less tax revenues something this economy can not afford.

Another concern is that this new provision requires that you give the buyer your social security number. Talk about a way to invite identity theft.

I strongly recommend that you either support or submit a bill to repeal this provision.

Sincerely yours,

 

To me, amounts in consideration for property means any physical item, including that $2,000 worth of gold. That's the change and it is significant because it will require a 1099 when making payment to another person.

 

I have reconsidered my last post.

 

Hello All,

My longtime good friend at the IRS said it will apply to simple transactions, the IRS did not have anything to do with the drafting of the legislation & they are not looking foward to enforcing the NEW reporting standards. I saw in an earlier post where it was mentioned that the IRS looks at your life style, (she read the thread) and she said they absolutely take a look at what cars you have, Umm nice boat there, you say you have an airplane, even your landscaping. Just to size up and compare to what your returns indicate. Getting my tax news right from the horses mouth,

Steve