Repeal voted on and Passed.

http://voices.washingtonpost.com/2chambers/2011/03/house_overwhelmingly_approves.html

 

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What does this mean for us coin collectors? Why did you post this!

 

You're new, read schedule D sometime. Over 200 posts in a month, we must have an expert among us.

 

I'm not a coin expert at all. Let me do the math. 200 posts/30 days = about 7 posts/day.
On CT 1.5 hour/day average, give or take an hour, taking me 13 minutes for one post. Not difficult.

Looked at it, never heard of it until now. Do any of you run a coin shop or a business?

 

plenty of people here deal, run a business, or vest pocket.

 

It's a huge burden on business.
I would think that it's huge news to all the business owners and investors here.

 

uh huh....

 

Well, I don't run a coin shop, so it doesn't apply to me. I get it now. Now I'm thinking of it, cheaper coins!

 

Think again. Under the law that was passed as part of the healthcare bill a coin dealer (or any business for that matter) would be required to file a 1099 if you sold them $600 or more of gold, silver, coins, etc. in a calendar year. Not only would that be a HUGE bookkeeping and paperwork burden on businesses it would cause you untold headaches with the IRS. (If you could not provide paperwork documenting the purchase price of the items you sold you would probably have to pay income tax on the entire sale price.)

Hopefully in the future our representatives in Washington will read bills before they vote on them instead of following "logic": "We have to pass the bill so we can find out what is in it."

 

Hope springs eternal! Not gonna happen, but then again I always think the glass is half-empty when it comes to Washington.

 

My business does transactions over 600 bux with untold numbers of others throughout the year.
The paperwork, for even my small business, will be crushing. I can't even fathom what even moderate size businesses will do.

This requirement is IN-SANE!

 

There'll be an App for that "paperwork" and no excuse not to comply with reporting should this come into effect.

 

So this House bill is different from the Senate bill, right? That would mean the two houses will ned to get together and agree on a bill that both houses will pass.

 

Probably would be an app Krispy. The biggest headache of the 1099 rule is the $600.00 reporting requirement is an aggregate amount for the entire year. Therefore you have to treat every purchase transaction as if the 1099 rule applies because that seller could sell you more tomorrow.

 

Think about if WalMart had to fill out one of these stupid forms in compliance with such a law. They would literally have to send a fleet of semi trucks to Washington to deliver the burdensome documents.

 

Um, no, they wouldn't. I don't know what world some folks are living in thinking that big companies would be manually filling out tax forms???

This is a digital era and there is a Paper Reduction Act to be considered. Inventory is managed by automated and digitized systems. Taxes can be tallied, figured and submitted then audited digitally as well.

Software, as I implied with my earlier suggestion about an "App for that", could be employed by any individual, small business owner or big box retailer.

 

How so? Sure, Wal-Mart would have to report their cumulative purchases of $600 or more but they purchase goods and products in such HUGE quantities that somehow I don't think the $600 trigger would greatly affect them.

Perhaps you are confusing purchases with sales. Wal-Mart does not have to file a 1099 for sales. If you purchase something at Wal-Mart you get a receipt but Wal-Mart will not file a 1099 for the purchase because you (the customer) paid money to Wal-Mart. If you sold something to Wal-Mart and received money from them for that sale then Wal-Mart may have to file a 1099 to report the money paid to you.

 

You can't digitize a 1099, trust me, we would if we could.

 

The 1099 is for both sales and purchases between businesses.
When a business writes off a purchase before the 600 rule, it just kept the reciept and that was that.
Now there is the reciept, but there also must be an exchange of 1099s for EACH individual transfer over 600, or one 1099 for a cumlative annual transfer over 600.
Like I said, it is a nightmare for a small business, and like was mentioned, big businesses will be overwhelmed IMO.
For example, I buy business supplies at Wal-Mart all the time. Before, they did not need to know, nor did it matter that I was buying for a business. Now there needs to be some sort of 'trigger' to alert them that I am buying for a business, and exchange of information, so that they can keep account of my cumlative purchases if I don't exceed 600 at one time, which would be unusual, but not unheard of at Wally World.
This is just an example too, I deal with WAY more than just one supplier/customer that will fall into 1099 exchange now.
I'll say it again, just looking at what we have to do, compound that for each and EVERY business, big and small... Think about the lost productivity and the paper!

 

Why and who are the "we" you are referring to? W2s and other 1099 type forms are reported to the IRS and can be auto filled in your tax software, then e-filed. How hard can this be?

I see no reason why if there is to be a change in reporting such transactions that a new system to streamline this also cannot be devised. How much better to implement it than to make it simple rather than tedious. As I keep suggesting, a digital tracking system paired with unique identification seems all that's necessary to keep track of the data.

It really doesn't seem any more difficult or cumbersome of a process than when someone tenders a tax exemption ID number, for instance when an teacher/educator buys a book from a retailer for business/educational use thus avoiding sales tax. It's just an additional step in the process of reporting the transaction and so will be this if it comes to be. I guess some folks are just slow to adjust to changes in procedures as well as being adverse to paying taxes.