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| Economy |
| Government Begins To Track Gold Sales Greater Than $600 |
| 2010-07-19 |
| A blizzard of paperwork could be about to hit numismatics. Passage by Congress of the national health care legislation has had an unintended consequence to the nation’s coin collectors, vest-pocket dealers who buy and sell coins, and larger dealers who are frequent buyers of coins that collectors periodically liquidate as they trade up their collections for better coins, or simply sell to take a small profit or loss. What has happened is that effective Jan. 1, 2012, the whole system of giving and receiving Internal Revenue Service 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for coins and other goods that they sell as well as buy. The responsibility for issuing forms kicks in at $600 for coins or bullion – not a very high level and one that has already started sounding alarm bells. It doesn’t matter in what form payment is made, whether cash, check, credit card, or Yap stone money, the $600 threshold applies. There’s a bill introduced by Rep. Dan Lungren (H.R. 5141), which has gathered over 80 members of Congress as co-sponsors to repeal this section. Evidently, however, the drafters of the provision think there is a $17 billion loophole that this plugs. The Industry Council for Tangible Assets is alerting member dealers and the public at large in the hope that some sense of outrage will lead to a ready modification before the law becomes operational in 2012. Form 1099 is used to report independent contractor income, income from dividends, income from other things – and is one of the reasons why children receive tax bills for work or labor or services performed. Section 9006 of the Patient Protection and Affordable Care Act (Public Law 111-148, signed into law by President Obama this spring) turns 1099 forms into reporting forms not only for independent contractor’s income – what they have long been used for – but also to show sales, gains and losses on purchases and sales of goods as part of a trade or business. |
| Posted by: Anonymoose |
| #19 Check the great depression. It's an FDR move for confiscation. |
| Posted by: newc 2010-07-19 23:39 |
| #18 > For the record, neither do I. I like roads, police, etc. and do not mind taxes to go to said things Best to tax land values not work etc. It's impossible to dodge. |
| Posted by: Bright Pebbles 2010-07-19 17:38 |
| #17 He's coming after it, as perdicted at the Burg several months ago. |
| Posted by: Besoeker 2010-07-19 16:31 |
| #16 Back in WWII, my father served with draftees so opposed to paying any income tax they would go AWOL once their military pay passed the $600 limit where they would be obliged to file with the IRS (at the time). Being drafted (for them) wasn't as bad as paying income tax! |
| Posted by: Anguper Hupomosing9418 2010-07-19 15:44 |
| #15 For the record, neither do I. I like roads, police, etc. and do not mind taxes to go to said things. From my conversations I do see the other side's (self serving) point. Get extra income, less paperwork, welfare beni's, etc. Some people in government will say this amount is made up from collecting the sales tax from commerce. Those people are full of shit. Of course everything could be sold for $599. Maybe it isn't the value of the item transferred, but buyer also has to purchase a deck of cards, also valued at $599, to make up the difference. |
| Posted by: swksvolFF 2010-07-19 13:06 |
| #14 Er, not that I would ever advocate such a thing. Certainly not! But the temptation will be much greater. |
| Posted by: Ebbang Uluque6305 2010-07-19 12:46 |
| #13 Black market is the answer. |
| Posted by: Ebbang Uluque6305 2010-07-19 12:41 |
| #12 Not just illegals AP. There are many legits who do the same thing. Said person takes home the same as if paying taxes, basically outbids in-open employees yet takes home same amount without the paperwork. Evolution according to the environment. |
| Posted by: swksvolFF 2010-07-19 12:04 |
| #11 At the time of the fall of the Soviet Union, 50% of the economy was underground, just sayin'. At present how much of the economy is underground in the US, when illegals are paid by cash? |
| Posted by: Alaska Paul 2010-07-19 11:14 |
| #10 This is the preliminary phase of ramping up the tax and enforcement system to handle a future VAT Tax (national sales tax) on everything. Once the system is in place, the $600 minimum transaction will drop to handle ALL transactions. Similar to Europe's natoional sales tax system. A massive fleasing of the nation by the Dems headed up by the Chicago thugs who are experts at fleasing. |
| Posted by: Uluting Black8810 2010-07-19 10:53 |
| #9 Wonder how much of the increase in Boomtown Washington DC's employment is accounted for by expansion at IRS.... Thousands? Tens of thousands? |
| Posted by: lex 2010-07-19 10:35 |
| #8 [GOLDFINGER Fort Knox Raid video here] |
| Posted by: Anonymoose 2010-07-19 09:25 |
| #7 AKA the CPA Full Employment Act. Thanks, guys! |
| Posted by: Raj 2010-07-19 08:41 |
| #6 The same provisions of this bill also would also be applicable to collectors of guns, cars, 'cute' ceramic dolls, artwork, vintage wines, ATVs, fishing gear, furniture, lawnmowers (selling your riding tractor, are you?) and just about anything else of value that a person could collect as a hobby. |
| Posted by: Mullah Richard 2010-07-19 08:23 |
| #5 lesee. You're paying cash, which you've presumably been taxed on for an equivalent non-consumable product at market price. What $17B tax loophole? Lying f*ckers. They just are creating a list for possible future confiscation and making it harder to hedge against Bernanke printing money til it's worthless. |
| Posted by: Frank G 2010-07-19 07:56 |
| #4 [GOLDFINGER theme here]. |
| Posted by: JosephMendiola 2010-07-19 01:50 |
| #3 NASA + future OWG-NWO also need Gold as a vital element for space travel [SpaSys]. |
| Posted by: JosephMendiola 2010-07-19 01:49 |
| #2 The Man sure FIFY |
| Posted by: St. Gianna Beretta Molla 2010-07-19 01:18 |
| #1 Hmmm, It looks like Obama plans to copy Rosevelt and outlaw Gold.(Again) Now why? Simply to bankrupt America? So there's NO counter to "Fiat" Printed "Money"? Looks like it. The Man sure acts like an Enemy Agent. |
| Posted by: Redneck Jim 2010-07-19 00:52 |