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Originally Posted by Exhibitman
Bogus. False. Complete BS hyperbole. We've been over this before but apparently some people aren't paying attention.
First of all I have dealt with IRS and state auditors. You do not need paper proof to prove basis. Testimony is evidence. I've had clients face down the IRS with direct testimony. I paid $500 for a Warren Spahn card that I sell for $1,000 on eBay and I get a 1099, I report it as such and that will stand up in a court or in an audit. The only things you absolutely must have receipts to prove on your personal return are charitable deductions.
Second, all a 1099 does is alert the IRS that you received money, not net income. I get them every year in the millions because any payment to an attorney is 1099'd and any settlement money paid to an attorney's trust account is 1099'd, all under the law practice's tax ID. The settlements and my deductible costs and the proceeds all are flushed through on my tax return and never hits my net income.
The people panicking over this are worrying about nothing, unless they are tax cheats who didn't intend to declare their incomes from card transactions. Don't do that. Just pay your taxes. If you made huge profits, be happy you did. Profits are a nice problem to have.
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If it’s all just false BS then why was it lowered to $600?
Not saying you’re wrong… certainly not saying you’re right either. Whole lotta experts running their mouth yet it hasn’t happened yet.
Only way to know what will play out is watching it happen. When has trusting that .gov has nothing but honorable intentions played out well?
Just sayin’….