Quote:
Originally Posted by Lucas00
I mean, this basically had to happen.
There would've been hundreds of thousands of people who refuse to pay or straight up don't. Imagine the legal proceedings to that happening. It would basically be the people vs the government, and they definitely don't want that.
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There would not be a a ton of legal proceedings as a result. If taxpayers getting these 1099s simply refused to report them on their tax returns, or pay any tax resulting from them, the IRS simply assesses them the tax due based on what they know, which is only the amount reported to them on the 1099. It will be up to the taxpayer to report the gross income from the 1099s they receive, and then they can show the offsetting deductions and such to actually lower their taxable income/gain to the proper amount. It is the taxpayer's responsibility to properly report their taxable income to the IRS. The IRS doesn't have to take anyone to court to do this and to commence collection activities.
Meanwhile, taxpayers thinking they can take the IRS to court over this is a joke. Doing so would be the same as taxpayers taking the IRS to court over being required to pay taxes on the income reported on their W-2s. This isn't really about any new tax laws at all, just the requirement for third parties to report the results of taxpayer activities to the IRS for better enforcement. Any taxpayer taking the IRS/government to court over this is basically someone trying to cheat the system and not pay their taxes that are due. Remember, the law is that even without a 1099, the taxpayers are still required to report and have their net income/gain properly taxed.
12-23-2022, 06:54 PM
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