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looking to buy · 29 March 2011, 05:22 AM

So, I have been lead to believe by my bookkeeper that any watches I buy on TRF, if I buy them from a US person, must have an IRS 1099 sent to them (the seller). I recently purchased a watch here from a very respected TRF seller. ( I will not mention his name now) He told me he would give me his employer identification number (payment went to a corporation) after the sale was completed.

I have sent him numerous emails and even tried to buy another watch from him and he will no longer respond to me. He has not sent the EIN as he promised. From what I understand, the IRS is making it mandatory that all purchases must have a 1099 sent to the seller, if the price exceeds $600. If I do not send one then I get hit with a monthly penalty for every month I am late. Or, I could send a notice to the IRS that the seller failed to provide it to me which could get him in trouble.

Now, it is true that this is only an issue if one of us gets audited but the penalty is such that I am not willing to take the chance. If he gets audited and I did not send it, then I get penalized. If I get audited and did not send it then I get penalized and he gets audited.

Do any of you tax guys know the rule? I understand that things tightened up a lot as of this year and that this is being closely monitored by them. I do not want to make a big deal out of it if it is different than what I understand it to be. But, I also do not want to get hit with big fines for failure to comply.

I know we all hate the tax guys, but I have been hit with some good sized fines in the past for failure to comply with things I did not know I had to comply with.

So if some of you tax guys could weigh in I would appeciate any advice.

Ebruner · 29 March 2011, 05:25 AM

NOT true, that law, is not set to go into effect until Jan 01 2012. Congress is working to change the requirement as we speak.

-Eddie

MonBK · 29 March 2011, 05:27 AM

I heard that IRS is reading the "Who is who" section daily.

Rolex116520 · 29 March 2011, 05:27 AM

Why is the 'for sale" section gone quiet within 5 minutes after this thread ?

All our sellers have bought themselves a ticket to Wallis & Fortuna or Monte Carlo

Numismatist · 29 March 2011, 05:30 AM

Watches are the new currency!

Mosco · 29 March 2011, 05:30 AM

Quote:

Originally Posted by MonBK

I heard that IRS is reading the "Who is who" section daily.

Quote:

Originally Posted by Rolex116520

Why is the 'for sale" section gone quiet within 5 minutes after this thread ?

All our sellers have bought themselves a ticket to Wallis & Fortuna or Monte Carlo

But seriously

PLEASE LOCK THIS THREAD!!!!

or am I?

TRW · 29 March 2011, 05:32 AM

I think Bob raises a Valid concern for the People who Live the straight and Narrow.

TRW · 29 March 2011, 05:33 AM

Quote:

Originally Posted by Mosco

But seriously

PLEASE LOCK THIS THREAD!!!!

or am I?

looking to buy · 29 March 2011, 05:34 AM

Quote:

Originally Posted by Mosco

But seriously

PLEASE LOCK THIS THREAD!!!!

or am I?

I do not think that the tread should be locked. I am not encouraging tax or political comments. I just want to me sure I am following the law as it relates to these kinds of purchases. And, I imagine others may feel the same.

garGARgar · 29 March 2011, 05:34 AM

What you don't know won't hurt you...or will it. Regardless, I know nothing.

Brunotheboxer · 29 March 2011, 05:35 AM

Then don't buy watches over that there interweb. Go to an AD. They'll take your tax dough for sure.

HL65 · 29 March 2011, 05:35 AM

I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again!

garGARgar · 29 March 2011, 05:35 AM

Quote:

Originally Posted by looking to buy

I do not think that the tread should be locked. I am not encouraging tax or political comments. I just want to me sure I am following the law as it relates to these kinds of purchases. And, I imagine others may feel the same.

I'm certain Greg was kidding.

TRW · 29 March 2011, 05:37 AM

Quote:

Originally Posted by Brunotheboxer

Then don't buy watches over that there interweb. Go to an AD. They'll take your tax dough for sure.

Agreed.

Rolex116520 · 29 March 2011, 05:45 AM

Quote:

Originally Posted by SteelerFan1965

I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again!

and that's coming from a guy that buys for hundreds of K vintage watches with used 20 and 50 dollar bills

Rolex116520 · 29 March 2011, 05:46 AM

Quote:

Originally Posted by garGARgar

I'm certain Greg was kidding.

You really wanna bet on that ?

Art 1 · 29 March 2011, 05:51 AM

The sellers here are honest, I'm sure that they report earnings.

Mosco · 29 March 2011, 05:57 AM

Quote:

Originally Posted by looking to buy

I do not think that the tread should be locked. I am not encouraging tax or political comments. I just want to me sure I am following the law as it relates to these kinds of purchases. And, I imagine others may feel the same.

What Gary said

Quote:

Originally Posted by garGARgar

I'm certain Greg was kidding.

Mosco · 29 March 2011, 06:00 AM

Quote:

Originally Posted by SteelerFan1965

I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again!

Ken, you got me chucklin'

cgjane · 29 March 2011, 06:21 AM

I cant help but hear this sound in the classifieds:

http://www.hark.com/clips/hxrjyrcrhx-cartoon-running

Tools · 29 March 2011, 06:32 AM

Quote:

Originally Posted by looking to buy

So, I have been lead to believe by my bookkeeper that any watches I buy on TRF, if I buy them from a US person, must have an IRS 1099 sent to them (the seller). . . . .

Your bookeeper needs to go back to Tax school.......

Here is the gist:

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

So, it is still debateable if this rule applies to an individual. If so, and left as is, you would also need to provide 1099's to the grocery store, the gas station, your landscaper/houskeeper, or anybody else that you purchased more than $600 worth of goods or services during the entire tax year.. It would be more than a watch... New tires on the car - 1099; New bedroom mattress - 1099; Air-conditioner go out - 1099. Well, you get the idea...

bayerische · 29 March 2011, 06:32 AM

Quote:

Originally Posted by SteelerFan1965

I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again!

I thought you were a highlander, or are you from colorado?

Mosco · 29 March 2011, 06:42 AM

Larry - I'd love to be sitting next to you during trivia games

but spot on.

Dan2010 · 29 March 2011, 06:49 AM

You should also be paying sales tax or a use tax too but I bet your bookkeeper didn't mention that.

looking to buy · 29 March 2011, 07:18 AM

Quote:

Originally Posted by Tools

Your bookeeper needs to go back to Tax school.......

Here is the gist:

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

So, it is still debateable if this rule applies to an individual. If so, and left as is, you would also need to provide 1099's to the grocery store, the gas station, your landscaper/houskeeper, or anybody else that you purchased more than $600 worth of goods or services during the entire tax year.. It would be more than a watch... New tires on the car - 1099; New bedroom mattress - 1099; Air-conditioner go out - 1099. Well, you get the idea...

Thanks Larry, however i forgot to add that again from what I understand no credit card purchases need to be reported as the credit card companies are mandated to do that. Only cash or check purchases over $600. But thanks for the clarification. I guess this is a topic that I should not have posted. I delayed posting it for several weeks, concerned that I would have a reaction that was perhaps misunderstood.

kareemthedream33 · 29 March 2011, 07:22 AM

It was a legitimate concern that was adequately clarified. No need to apologize for bringing it up as I am sure you are not the first person to ponder it.

wdalew5 · 29 March 2011, 07:32 AM

If this had been me asking this question, the thread would have locked and I would have been sent the principles office....

Welshwatchman · 29 March 2011, 07:40 AM

Quote:

Originally Posted by SteelerFan1965

I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again!

Quote:

Originally Posted by Rolex116520

and that's coming from a guy that buys for hundreds of K vintage watches with used 20 and 50 dollar bills

That reminds me Ken.

I need the money printer back. I'm hankering after a nice vintage Daytona also.

Be sure to mark it as a "gift" and fill in form IRS form K155MYA55

TRW · 29 March 2011, 07:47 AM

Quote:

Originally Posted by Welshwatchman

That reminds me Ken.

I need the money printer back. I'm hankering after a nice vintage Daytona also.

Be sure to mark it as a "gift" and fill in form IRS form K155MYA55

Mosco · 29 March 2011, 07:55 AM

Quote:

Originally Posted by Welshwatchman

That reminds me Ken.

I need the money printer back. I'm hankering after a nice vintage Daytona also.

Be sure to mark it as a "gift" and fill in form IRS form K155MYA55

TRF is filled with comedians today... I've been giggling like a teenage girl pretty much the whole day in the office.

29 March 2011, 05:22 AM	#1
looking to buy "TRF" Member Join Date: May 2008 Real Name: Bob Location: Paradise CA Posts: 920	Buying on TRF and IRS reporting So, I have been lead to believe by my bookkeeper that any watches I buy on TRF, if I buy them from a US person, must have an IRS 1099 sent to them (the seller). I recently purchased a watch here from a very respected TRF seller. ( I will not mention his name now) He told me he would give me his employer identification number (payment went to a corporation) after the sale was completed. I have sent him numerous emails and even tried to buy another watch from him and he will no longer respond to me. He has not sent the EIN as he promised. From what I understand, the IRS is making it mandatory that all purchases must have a 1099 sent to the seller, if the price exceeds $600. If I do not send one then I get hit with a monthly penalty for every month I am late. Or, I could send a notice to the IRS that the seller failed to provide it to me which could get him in trouble. Now, it is true that this is only an issue if one of us gets audited but the penalty is such that I am not willing to take the chance. If he gets audited and I did not send it, then I get penalized. If I get audited and did not send it then I get penalized and he gets audited. Do any of you tax guys know the rule? I understand that things tightened up a lot as of this year and that this is being closely monitored by them. I do not want to make a big deal out of it if it is different than what I understand it to be. But, I also do not want to get hit with big fines for failure to comply. I know we all hate the tax guys, but I have been hit with some good sized fines in the past for failure to comply with things I did not know I had to comply with. So if some of you tax guys could weigh in I would appeciate any advice. __________________ 16610 Submariner - 116710 GMT II C - 16570 Explorer II - 126710BLRO GMT II (Pepsi) - 116300 Datejust II

29 March 2011, 05:25 AM	#2
Ebruner "TRF" Member Join Date: Sep 2009 Real Name: Eddie Location: Kentucky Watch: 118208 Posts: 2,510	NOT true, that law, is not set to go into effect until Jan 01 2012. Congress is working to change the requirement as we speak. -Eddie __________________

29 March 2011, 05:30 AM	#5
Numismatist "TRF" Member Join Date: Nov 2007 Real Name: Chris Location: Camden ME & STT Watch: 116600 Posts: 6,350	Watches are the new currency! __________________ Rolex 116600 Sea-dweller Montblanc Solitaire Doué Black & White Legrand FP Montblanc Solitaire Doué Black & White RB Montblanc Meisterstück Diamond Mozart BP Montblanc Meisterstück Mozart BP

29 March 2011, 05:34 AM	#10
garGARgar "TRF" Member Join Date: Aug 2010 Real Name: Gary Location: New York, NY Watch: 16610LV Posts: 711	What you don't know won't hurt you...or will it. Regardless, I know nothing. __________________ 16610LV 126334 116710LN

29 March 2011, 05:35 AM	#12
HL65 TRF Moderator & 2024 SubLV41 Patron Join Date: Dec 2007 Real Name: Ken Location: SW Florida Watch: One on my wrist. Posts: 64,012	I am a senior officer with the IRS and am currently gathering names as we speak. If you could promptly email me the name of the seller I will follow up with him in writing. Thanks for your compliance and patriotic duty. We are currently experiencing a shortfall and are looking for all of the revenue we can find. Thanks again! __________________ *SPEM SUCCESSUS ALIT*

29 March 2011, 05:27 AM	#3
MonBK Banned Join Date: Nov 2010 Location: Kingstown Posts: 58,279	I heard that IRS is reading the "Who is who" section daily.

29 March 2011, 05:27 AM	#4
Rolex116520 "TRF" Member Join Date: Feb 2009 Location: EEC Watch: Daytona & Deepsea Posts: 2,387	Why is the 'for sale" section gone quiet within 5 minutes after this thread ? All our sellers have bought themselves a ticket to Wallis & Fortuna or Monte Carlo

29 March 2011, 05:32 AM	#7
TRW Banned Join Date: Apr 2010 Real Name: Tim Location: tennessee Watch: 16623 YM Posts: 3,630	I think Bob raises a Valid concern for the People who Live the straight and Narrow.

29 March 2011, 05:35 AM	#11
Brunotheboxer Banned Join Date: Mar 2008 Real Name: Bruno Location: Boston/Cape Cod Watch: 16610,PAM. 111, G Posts: 7,608	Then don't buy watches over that there interweb. Go to an AD. They'll take your tax dough for sure.

29 March 2011, 05:51 AM	#17
Art 1 Banned Join Date: Feb 2008 Location: Florida, Canada Watch: Rol/Seik/Tud/Omega Posts: 30,244	The sellers here are honest, I'm sure that they report earnings.

29 March 2011, 06:21 AM	#20
cgjane "TRF" Member Join Date: Jan 2011 Location: Houston Watch: 116509 BlackArabic Posts: 1,176	I cant help but hear this sound in the classifieds: http://www.hark.com/clips/hxrjyrcrhx-cartoon-running __________________ Life is an adventure or nothing at all.

29 March 2011, 06:42 AM	#23
Mosco "TRF" Member Join Date: Dec 2008 Real Name: Greg Location: Cincinnati Watch: I like to... Posts: 18,567	Larry - I'd love to be sitting next to you during trivia games but spot on. __________________ Instagram - @CaliberSwiss *“A man who procrastinates in his choosing will inevitably have his choice made for him by circumstance.” - Hunter S. Thompson*

29 March 2011, 06:49 AM	#24
Dan2010 "TRF" Member Join Date: Apr 2010 Location: South Carolina Watch: Panerai 914 Posts: 6,540	You should also be paying sales tax or a use tax too but I bet your bookkeeper didn't mention that.

29 March 2011, 07:22 AM	#26
kareemthedream33 "TRF" Member Join Date: Aug 2010 Location: Canada Watch: Explorer Posts: 1,748	It was a legitimate concern that was adequately clarified. No need to apologize for bringing it up as I am sure you are not the first person to ponder it.

29 March 2011, 07:32 AM	#27
wdalew5 "TRF" Member Join Date: Dec 2010 Real Name: Dale Location: ohio Watch: Rolex,omega,casio Posts: 508	If this had been me asking this question, the thread would have locked and I would have been sent the principles office.... __________________ " yes , I do wear the EVH 5150 shoes "

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