Quote:
Originally Posted by sreader3
Edited to add: Same comments to Bob C. Yes I am serious. I am very concerned about federal encroachment. I do not place unqualified trust in federal authorities, although I know many good people who work for the federal government. Neither did our founders repose trust in centralized authority. Apparently you are not as concerned, which is your right. It is still a free country.
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My question to you about being serious had absolutely nothing to do with whether we can trust the government or not, it was solely directed at your comment that, and I quote, "the situation you are describing where deducting basis from the revenue shown on the 1099 triggers an audit". That is not even close to anything Adam/Exhibitman said or ever implied.
Simply deducting one's basis from the proceeds they got from something they sold, to determine their net taxable income/gain, is NOT just in and of itself ever going to trigger an IRS audit. In fact, the IRS pretty much fully expects everyone reporting such sales on their tax return is also going to be deducting the basis of what they sold. I just didn't want someone reading what you stated in your post to think that by doing what they are supposed to be doing on their tax return, deducting their tax basis of an item sold, it was suddenly going to trigger an IRS audit for them. That comment/thinking is totally wrong!!!!!
I probably have no more, and maybe even less, trust in our government and politicians than you, and also am not a big fan of encroachment and even more government oversight and regulations. I am merely speaking to the tax laws and requirements/reporting in place, and what people need to be aware of in complying with what is out there. I am not commenting on and either approving or condemning our government and the tax laws they passed, just trying to better explain them and how they are supposed to work for people, especially in regard to how those tax laws can impact their collecting activities.