IRS delays $600 reporting requirement

[TMagda]

A couple of things. Reporting cash transactions with a 1099 does not change the taxability of the transaction. This was always taxable unless excluded for other reasons (1035 exchange comes to mind). I have met so many that believe if you are transacting in cash it is not a taxable event. Not true. But, the tax is on the profit, not on the gross receipts so if you sell a used $3000 dining room table for $600, no worries. Second, big corporations pay tax. They are audited constantly. The company I have worked at for 45 years has never been out of an audit. The army of lawyers and accountants are generally putting deferrals in place meaning the taxes are just paid in a later fiscal period. Additionally, the US tax code requires taxation of global corporate income providing a complex calculation for a credit on taxes paid offshore to prevent double taxation. It is possible for a multinational, which many are, to actually have a US credit derived from foreign income taxes paid that exceeds the US liability in that period, therefore "no taxes". This is clearly not a scenario where the corporation is paying no taxes. This has been misrepresented by activists with a "tax the rich" agenda. I would say that corporate and international taxation, as well as some advanced individual tax planning is incomprehensible to 99.9% of the population (even professionals) but that never prevented anyone from speaking confidently on the subject.