Buying on TRF and IRS reporting

[Welshwatchman]

I'm no comedian Greg ... just a wit.

To be more precise ... a half wit.

[toph]

Originally Posted by Tools

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





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...

exactly.

[nch209]

Very informative post.

[onkyo]

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, please add my name --> Greg ...... but I go by 'Mosco'.

[Mosco]

Originally Posted by onkyo

Ken, please add my name --> Greg ...... but I go by 'Mosco'.

I just peed a little.

[Saxon007]

Originally Posted by Mosco

I just peed a little.

Your new Delta name is "Squirt".

[TimeToGo]

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.

Don't look in the Who's who...

[HL65]

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

[HL65]

Originally Posted by Mosco

I just peed a little.

Pav and Greg - fear not you guys just got a free lifetime hall pass. No taxes due!

[bewithabob]

Originally Posted by Welshwatchman

I'm no comedian Greg ... just a wit.

To be more precise ... a half wit.

I guess that makes me and quite possibly a few more of us 1/4 wits: qwits 1/6th wits: ...(swit?)

every time i have made direct transactions on my bank I have thought-

the tax man...thats one for you nineteen for me ....

[beowulf566]

They really better figure this thing out before 2012. i would hate to get audited because I nereded some milk and eggs

[enronforme]

Just read this thread and the only thought I had was- REALLY?????
Bob

ps. But I did like Greg's humor throughout

[Route 66]

Originally Posted by Mosco

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

Yeah, as long as you're not playing against him.

[Art161]

Originally Posted by Dan2010

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

For the 2010 California Resident Income Tax Return (Form 540), that would be Side 2, line 95, if the seller did not collect the tax.

[STEELINOX]

Originally Posted by Mosco

I just peed a little.

Youra sick pup, Greg

[Dr. Robert]

if you drive a car I'll tax the street
if you try to sit I'll tax your seat
if you get too cold I'll tax the heat
if you take a walk I'll tax your feet

[Andad]

Originally Posted by wdalew5

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

We HAVE no 'principles' on this Forum.

Right Greg?

[rr-nyc]

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...

As stated, this does not apply to an individual purchasing from a corporation or another individual.

In order for anyone to issue a 1099, the issuer (payor) needs the EIN/FID so unless the person buying has their own company, there is no need to even think about it. I would say this OP's accountant is an idiot. If anything, the seller/corporation has every right to request the buyers SSN in order to complete an IRS Form 8300 for cash purchases over $10k

[Maxfli]

Originally Posted by rr-nyc

i would say this op's accountant is an idiot.

Bingo!

[Medtech]

Why would you need to pay tax on a "used" watch??

The seller, well that's between them and the IRS.

[Mosco]

Originally Posted by directioneng

We HAVE no 'principles' on this Forum.

Right Greg?

Having principles is against our principles...

[Art161]

Originally Posted by Medtech

Why would you need to pay tax on a "used" watch??

The seller, well that's between them and the IRS.

From the buyer's perspective, we are talking about sales or use tax, not income tax. The IRS has nothing to do with sales or use tax; it is a state matter.

As to why you have to pay sales or use tax on a "used" anything, it's because that's what the law in some states says. Let's not try equate law with logic here.

[Boopie]

I believe California collects sales tax on used cars...about a dozen years ago I sold my brother in law my (very) used car for about 1/2 of what it was worth (a favor to him)...and I had to charge and collect sales tax on the sale, and send it in to the DMV when I signed over the pink slip (title document).

[skyedog]

Seriously

Why you need to tell the IRS what you bought? unless you try to write it off.....

As I know with IRS "Don't ask don't tell"

[bayerische]

Originally Posted by Mosco

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

Funny how? I mean, funny like I'm a clown?

[Zed Homme]

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...

Just after your first bold print, the law clearly states "all companies." I think we are safe on this one. Now if your company buys milk, eggs, landscaping services, tires, etc. it will have to file a 1099...

[Cru Jones]

Originally Posted by rr-nyc

As stated, this does not apply to an individual purchasing from a corporation or another individual.

In order for anyone to issue a 1099, the issuer (payor) needs the EIN/FID so unless the person buying has their own company, there is no need to even think about it. I would say this OP's accountant is an idiot. If anything, the seller/corporation has every right to request the buyers SSN in order to complete an IRS Form 8300 for cash purchases over $10k

Originally Posted by Zed Homme

Just after your first bold print, the law clearly states "all companies." I think we are safe on this one. Now if your company buys milk, eggs, landscaping services, tires, etc. it will have to file a 1099...

what if the trusted TRF seller is doing business as a company and not as an individual?

[tnt]

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). 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.

I think you gave the seller a hard time. He may not want to deal with you any more in the future :-)

[tnt]

Originally Posted by rr-nyc

As stated, this does not apply to an individual purchasing from a corporation or another individual.

In order for anyone to issue a 1099, the issuer (payor) needs the EIN/FID so unless the person buying has their own company, there is no need to even think about it. I would say this OP's accountant is an idiot. If anything, the seller/corporation has every right to request the buyers SSN in order to complete an IRS Form 8300 for cash purchases over $10k

right on

[conrail]

@OP - you're kidding right!?

This thread made me laugh out loud.