The IRS is looking for you........

The IRS is looking for you........

Post by John Maso » Sat, 26 Jun 1999 04:00:00



I was talkking with a friend the other day about eBay and he told me
something that I had thought about before. He told me that thru a very
good source he heard some startling news.
Seems that the IRS has created a division that is only concerned with
online auction companies. They are tracking and logging information on
buying and selling practices of frequent users. What they are trying to
establish is a case against paying sells tax and non-reported earnings
on Income Tax returns. So those of you that think that you can make that
extra cash every year without reporting it, might just ahve to answer to
somebody up the line.
This is just a story that his wife told him....but then again she works
for the IRS......
--
Pan out the .GOLD to reply

Your Friend in Gold Mining............John

 
 
 

The IRS is looking for you........

Post by Money » Sat, 26 Jun 1999 04:00:00


Yes, there are tax rules for paying taxes on profits on the resale of personal
merchandise, as well as merchandise held for investment such as coins and
stamps. even if you sell stuff at a garage sale at a profit youre supposed to
report it.  cheers, alan mendelson

 
 
 

The IRS is looking for you........

Post by Russ Sop » Sat, 26 Jun 1999 04:00:00


Can you claim a loss and deduct that agains gains in the stock market?

 
 
 

The IRS is looking for you........

Post by John Maso » Sat, 26 Jun 1999 04:00:00


The "key word" is reciept. If you have reciepts for coins that you bought
and you sell them at a loss, uyes they can be deducted. But I would
venture to say that you would have to have a lot of deductions and be in
the business for real, before that option would be feasable. Every year
just before tax time I get my profit/loss sheet from my Broker. It
itemizes every purchase and selling transaction that I have done all year.
But that is the stock market, I'm talking coins here....strictly coins.
I would think that anybody that sells alot on eBay better get their ducks
in a row just in case this does happen to them.

Quote:

> Can you claim a loss and deduct that agains gains in the stock market?

--
Pan out the .GOLD to reply

Your Friend in Gold Mining............John

 
 
 

The IRS is looking for you........

Post by Ken Ba » Sat, 26 Jun 1999 04:00:00



[snip]

Quote:
>Seems that the IRS has created a division that is only concerned with
>online auction companies. They are tracking and logging information on
>buying and selling practices of frequent users. What they are trying to
>establish is a case against paying sells tax and non-reported earnings
>on Income Tax returns. So those of you that think that you can make that
>extra cash every year without reporting it, might just ahve to answer to
>somebody up the line.

While the Infernal Revenue Service has every right (and responsibility)
to investigate possible non-reported earnings, they should have absolutely
*zero* interest in sales tax, which is levied/collected at the state level.
With half of the above premise questionable, I'm leery of the other half
as well ...

<humor> But who knows?  The government has many, many special
agencies involved in tracking what individuals do on the Internet.  Why,
just this minute, a black helicopter appeared outside my office window
and pointed some sort of antenna in my direction ... But that by itself

&$$$$*#(((QWEQ       **NO CARRIER***
</humor>

--

P. O. Box 32541                          website:  http://www.kenbarr.com
San Jose, CA 95152-2541    (souvenir cards, MPC, Hickey Bros. tokens)
408-272-3247                                  Next show:  Vallejo 6/27

 
 
 

The IRS is looking for you........

Post by Infoserv » Sat, 26 Jun 1999 04:00:00


Quote:
>Can you claim a loss and deduct that agains gains in the stock market?

Of course not.  The tax code has no problems with double standards like this.
The code also applies a tax on people who sell their homes at a profit, but
will not allow deduction of homes sold at a loss.

Now if you incorporate, the rules are different.  You can even carry forward or
backward negative income which individuals cannot.

Ken

 
 
 

The IRS is looking for you........

Post by Ed Hendrick » Sat, 26 Jun 1999 04:00:00



< What they are trying to establish is a case against paying sells tax and
<non-reported earnings on Income Tax returns.

Are you talking strictly Federal IRS?  Never heard of a Federal sales tax.

--
Ed Hendricks
ANA# R178621
CM# 775

 
 
 

The IRS is looking for you........

Post by <Dus.. » Sat, 26 Jun 1999 04:00:00


Just to make things clear, any time you send more than $600 to an
individual, you are obligated to withhold payment until they fill out and
return a W-9 (request for taxpayer identification) and I-9 (to make sure
they are a legal resident.)  You are not obligated to have these forms
filled out if you are purchasing from a corporation......but getting a W-9
is really the only sure way to know that you are purchasing from a
corporation.  Also, the payment you made to the individual is required to be
reported to the IRS on a 1099 to make sure that the seller lists the money
as income (if the payment is more than $600.)  Even if the transaction
amount is not more than $600, the person or corporation receiving the money
is still required to report the receipt as income (as long as their basis is
less than the amount received.)  I'm only a lowly accountant (not a CPA,) so
anyone feel free to correct me if I'm wrong.  Although these are the laws, I
personally think that they are widely ignored on Ebay and other internet
sites.


Quote:
> I was talkking with a friend the other day about eBay and he told me
> something that I had thought about before. He told me that thru a very
> good source he heard some startling news.
> Seems that the IRS has created a division that is only concerned with
> online auction companies. They are tracking and logging information on
> buying and selling practices of frequent users. What they are trying to
> establish is a case against paying sells tax and non-reported earnings
> on Income Tax returns. So those of you that think that you can make that
> extra cash every year without reporting it, might just ahve to answer to
> somebody up the line.
> This is just a story that his wife told him....but then again she works
> for the IRS......
> --
> Pan out the .GOLD to reply

> Your Friend in Gold Mining............John

 
 
 

The IRS is looking for you........

Post by PFDJ » Sat, 26 Jun 1999 04:00:00



Quote:
>>>......Also, the payment you made to the individual is required to be

reported to the IRS on a 1099 to make sure that the seller lists the money as
income (if the payment is more than $600.).......I'm only a lowly accountant
(not a CPA,) so anyone feel free to correct me if I'm wrong.....<<<

Where's Roxanne (the CPA) when we need her?

I'm not even a "lowly accountant", but as a self employed individual I do
receive 1099's. They list miscellaneous income paid to an individual in excess
of $600 during a calender year....total....not per transaction.

I believe these forms only apply to payments for services rendered and not for
sale of merchandise. If that were the case individuals would have to send out
1099's to every merchant to whom they gave more than $600 worth of business
during the year.

Can you imagine being required to issue a 1099 to your local supermarket each
year....what a nightmare.

***************************
Phil DeMayo
Coinmasters 1188
ANA R-182606

***************************

 
 
 

The IRS is looking for you........

Post by <Dus.. » Sat, 26 Jun 1999 04:00:00


Actually, you are absolutely right about the "per year" requirement.  It
does not apply "per transaction" unless of course the transaction is in
excess of $600.  Thanks for pointing out my mistake.  But I am fairly sure
that it applies to services and merchandise alike.  In theory, if you bought
more than $600 of groceries from the "mom and pop" grocery store down the
road, and they are not incorporated, you are obligated to report on a 1099
the amount paid to them for the year.  In reality, the IRS would probably
not hold you liable for their taxes if the did not pay their income taxes
and you did not send a 1099 to the IRS.  I hope Roxanne posts before my I
have my whole leg in my mouth, rather than just my foot!


Quote:

> >>>......Also, the payment you made to the individual is required to be
> reported to the IRS on a 1099 to make sure that the seller lists the money
as
> income (if the payment is more than $600.).......I'm only a lowly
accountant
> (not a CPA,) so anyone feel free to correct me if I'm wrong.....<<<

> Where's Roxanne (the CPA) when we need her?

> I'm not even a "lowly accountant", but as a self employed individual I do
> receive 1099's. They list miscellaneous income paid to an individual in
excess
> of $600 during a calender year....total....not per transaction.

> I believe these forms only apply to payments for services rendered and not
for
> sale of merchandise. If that were the case individuals would have to send
out
> 1099's to every merchant to whom they gave more than $600 worth of
business
> during the year.

> Can you imagine being required to issue a 1099 to your local supermarket
each
> year....what a nightmare.

> ***************************
> Phil DeMayo
> Coinmasters 1188
> ANA R-182606

> ***************************

 
 
 

The IRS is looking for you........

Post by Michael G. Koerne » Sat, 26 Jun 1999 04:00:00


Quote:

> >Can you claim a loss and deduct that agains gains in the stock market?

> Of course not.  The tax code has no problems with double standards like this.
> The code also applies a tax on people who sell their homes at a profit, but
> will not allow deduction of homes sold at a loss.

> Now if you incorporate, the rules are different.  You can even carry forward or
> backward negative income which individuals cannot.

> Ken

What percent of private sales 'income' (such as from garage sales, etc)
is actually reported???  (I heard a figure about 2 years ago that about
5% of all tips are reported.)

(Rant time)

I **DESPISE** the income tax and wish more than anything that someone in
power would have the gumption to repeal the whole mess.  It DISCOURAGES
everything that we should be ENCOURAGING, it is the *WORST* violation of
personal privacy that there is, it is so complex that nobody really
knows what the code says or what most people REALLY owe, etc.  The best
alternative I have found is at http://www.fairtax.org .

And, besides, my mind works in such a way that I simply cannot make
heads or tails out of any of it...

--
____________________________________________________________________________
Regards,

Michael G. Koerner
Appleton, WI

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address to reply.   ***NOTICE***
____________________________________________________________________________

 
 
 

The IRS is looking for you........

Post by J » Sat, 26 Jun 1999 04:00:00


that is the funniest thing I have heard in a long time.
 
 
 

The IRS is looking for you........

Post by John Maso » Sun, 27 Jun 1999 04:00:00


I believe that this was strictly for IRS and earnings tax. Now as far as state
sales tax goes, I would think that would be just down the road. Correct me if
I'm wrong but haven't I seen on eBay auctions some states have to pay sales
tax? Such as if they were buying from a legitimate liscensed coin dealer.

Quote:



> < What they are trying to establish is a case against paying sells tax and
> <non-reported earnings on Income Tax returns.

> Are you talking strictly Federal IRS?  Never heard of a Federal sales tax.

> --
> Ed Hendricks
> ANA# R178621
> CM# 775

--
Pan out the .GOLD to reply

Your Friend in Gold Mining............John

 
 
 

The IRS is looking for you........

Post by PFDJ » Sun, 27 Jun 1999 04:00:00


Quote:

>>>.....Now as far as state sales tax goes, I would think that would be just

down the road. Correct me if I'm wrong but haven't I seen on eBay auctions some
states have to pay sales tax? Such as if they were buying from a legitimate
liscensed coin dealer.<<<

Those are auctions where the tax would be charged if the buyer were from the
same state as the seller. Example: California seller says California residents
to add $x.xx for sales tax.

Here in Connecticut we have both an income tax ( 4.5% ) and a sales tax ( 6% ).
Each year with our state income tax package is a form which we are supposed to
fill out and report all out of state purchases (such as mail order) that we
have made during the year and pay a "use tax" on it equivalent to the sales
tax.

I doubt many people fill out this form.

***************************
Phil DeMayo
Coinmasters 1188
ANA R-182606

***************************

 
 
 

The IRS is looking for you........

Post by Michael G. Koerne » Sun, 27 Jun 1999 04:00:00


Quote:


> >>>.....Now as far as state sales tax goes, I would think that would be just
> down the road. Correct me if I'm wrong but haven't I seen on eBay auctions some
> states have to pay sales tax? Such as if they were buying from a legitimate
> liscensed coin dealer.<<<

> Those are auctions where the tax would be charged if the buyer were from the
> same state as the seller. Example: California seller says California residents
> to add $x.xx for sales tax.

> Here in Connecticut we have both an income tax ( 4.5% ) and a sales tax ( 6% ).
> Each year with our state income tax package is a form which we are supposed to
> fill out and report all out of state purchases (such as mail order) that we
> have made during the year and pay a "use tax" on it equivalent to the sales
> tax.

> I doubt many people fill out this form.

Ditto for the same line on Wisconsin's tax forms.

--
____________________________________________________________________________
Regards,

Michael G. Koerner
Appleton, WI

***NOTICE***   SPAMfilter in use, please remove ALL 'i's from the return
address to reply.   ***NOTICE***
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