Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.
Thanks for catching this little gem, but what this means is that everything from a yard sale to a sale on ebay is covered now by issuing a 1099, for which you may be asked, whatja pay for that widget you sold on ebay, or on a bulletin board.
It's ALL goods and services, about %600B a year that the government would like to tax at the Federal and state levels.
It's narcistic drivel to think this is about gold and silver. It's far worse than that.
You're supposed to be reporting profits from the sale of anything, but it may not be as chilling for estate sales, since you're probably selling most stuff at a loss.
The little guy there will be most protected. But you have to qualify by being dead.
The government will say, if you bought for a dollar and sold for two, you ought to be reporting it anyway, and this is the vehicle.
The problem is, this is NOT the time to be collecting more revenue from the small business, or small investor, so we can turn around and give it to the banksters.
You know who is going to get killed by this?
I approached my boss with a couple articles regarding this issue. He repeated what was stated in that last story you (YDM) provided, that is, "We already fill out 1099's".
It is still unclear to me just what this 'expansion' in 2012 entails beyond an extension of what is already standard operating procedure. Is all this fuss about nothing? I doubt it, but could somebody save me some time & spell it out for me. TIA - been busy.
A week later, the world catches on this isn't about silver or gold. Looks like after all the posturing and gesturing, this one goes in the crapper about a month from now.
Re: "this is NOT the time to be collecting more revenue from the small business"
However I would like to see this crowd pay their fair share of regular income taxes. I've lost count of the ways in whcih "small business" owners live out of their cash drawers on pre tax dollars and submit tax returns like paupers while living in fancy houses and driving fancy cars and boats.
"It is really pretty east to automate with any good accounting software like Quick Books. Of course all those small companies that have a fire every year won't change.
"" Only the tax cheats have to worry. ""
Say WHAT ?
Very little to do with "current" taxes as most people see this. Control is the name and many more future controls. Why was it burried in a health care bill?
What if they tax the unrealized gain on the silver you now own or plan to own because they know you have it? How about the silver "dollar" you have, or the $5.00 gold piece. Legal currency in the country. Where does it stop?
What if they tax or require the minners to do this? What if they knock on your door and say they want your g/s or come with us?
Only the beginning......perhaps more of us than the "tax cheats" have to be concerned. I can't figure out why so many can not see what is happenning with these guys.
"Only the tax cheats have to worry"
Well I am not one of those people who like paper work. I keep getting more an more burdened by it. My paperwork has double over the last 20 years, (I used paper account ledgers 20 years ago) the amount of paperwork is consuming my time is interfering with the actual work. That is something to worry about.
Now, even on the personal level I am strapped with more paperwork. An automotive repair or almost any kind of major household repair will require you, the end consumer to collect tax number paperwork before the work is done and follow up with a 1099. Then you have to pay someone at the IRS to process this. That is of course after you pay the postal worker to deliver it.
I don't see any possible benefit for the general public.
How much more is the Government going to require of me?
<You know who is going to get killed by this?
Are you surprised? Obama won't let a few Federal judges stop his off-shore drilling moratorium. Why would he give up on instituting some form of tax and control on the internet?
I don't think I've ever quoted Rush before, but I have to make an exception this time. "How's that 'Hoax and Chains' working out for ya?"
YDM - you are spot on about this killing E-Bay, as all transactions are easily observed by anyone, and I really wonder about how many of those "Power Sellers" with 4,000+ transactions rated 99%, are CURRENTLY reporting their income to Uncle Sam.
Net, Net - this should be GREAT for Silver, as you will see an ASTRONOMICAL rise in bartering, and trust me, a big sack full of pre-1965 Silver Quarters will give you a lot more bartering options than a single one ounce Gold coin..........
This isn't about buying it is about selling, and I can't see where it raises taxes. If you make more than 8000 or 9000 your supposed to file anyway, I can't see what this 1099 nonsense means. For example, if you sell stocks, the government already knows and there is already a record, the way I understand it, it is letting the Bush tax cuts expire is the big thing because it raises the rate from 15 per cent to 20 percent, on a sale of stock and this is not just for people who make 250,000 dollars a year but for everybody. In fact, yes this is more lies from Obama about not raising taxes on anyone under 250,000 in fact, all Obama has done since he has been in office is to raise taxes on people making less than 250,000 1. raise tobacco taxes. 2. (Unconstitutional) Healthcare tax. 3. The attempt to raise energy taxes ( now dead) was about Obama and liberals trying to crush the working man and middle class with higher electric bills, gas bills, food bills, clothes bill. But thank God the energy tax and vat tax are now dead, there is no way a energy tax or a vat tax can get by this congress much less next congress which will have more freedom lovers in it than this one. Oh, that horrible Bush cutting taxes on the rich but thank God we have Obama to raise taxes on everybody. When will the media hold the liar in the White House, feet to the fire? We all know the answer.
The unforseen consequences of trying to tax gold and silver bullion or anything else sold for more than $600 by making sellers issue 1099 starting 1 Jan 2012---is a silver rush for the next 18 months to beat the deadline.
You know, sometimes clouds have silver linings.
This is that time.
<<by making sellers issue 1099 starting 1 Jan 2012->>
The 1099 is issued by the buyer and sent to the seller and IRS. The seller is the one who receives the income and pays the tax on it. If I hire someone to perform a service then I send them and IRS a 1099 of how much I paid them. I am the buyer of services and they are the seller.