IRS delays $600 reporting requirement

[RamAirBirds]

So I would then assume that the extra 80 Billion in Funding used to Hire these agents will slowly be returned as agents retire? Good Luck with that. Do we really thing the average age of an agent is 60? Also BIG Corporations as mentioned before all have the best Lawyers and Accountants and all play within the Tax Code. We may not like it but none will being in a gray area that would cause them to give up $$ in an audit. Did anybody see the Dave Chapelle opening monologue on SNL a few weeks back. It is really worth a look.
Something to ponder.
Merry CHRISTmas everyone.

[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.

[69 Post Sedan]

Originally Posted by RamAirBirds

Also BIG Corporations as mentioned before all have the best Lawyers and Accountants and all play within the Tax Code.

And right here IS the problem that needs to be resolved……

For example, we know of companies/organizations that pay little to no taxes due to misleading/false information on their taxes. They exaggerate on their assets to get loans yet lie about the value of assets to pay less in taxes. Our government needs to put a stop to this!!! Or make them held accountable! Corporate welfare is killing this country, not some measly $600 transaction.

Hopefully some of the new hires will be working on this never ending battle. I’m staying optimistic……..

Kurt

[TMagda]

Originally Posted by 69 Post Sedan

And right here IS the problem that needs to be resolved……

For example, we know of companies/organizations that pay little to no taxes due to misleading/false information on their taxes. They exaggerate on their assets to get loans yet lie about the value of assets to pay less in taxes. Our government needs to put a stop to this!!! Or make them held accountable! Corporate welfare is killing this country, not some measly $600 transaction.

Kurt

Kurt, you cannot make a general statement like this and be taken seriously. If you have a specific example, fine, we can discuss. Spouting out unsupported talking points only dilutes the argument. For clarity, do you take any deductions on your tax return? Or do you pass on them to pay extra taxes? Corporations are under perpetual audit by not only financial auditors who validate the accuracy of the books and records, but also by the states, the IRS, governing bodies in other countries, etc... There are federal taxes, state taxes, property taxes, payroll taxes,... the list goes on. As I said above, the current corporate tax rules are incomprehensible to 99.9% of the general population, and 100% incomprehensible to the current media. Also, the $600 reporting threshold does not alter the tax consequences of those transactions, they were always required to be included in the determination of income, it just makes them easier to audit. Most tax plans can create a deferral, where taxes are due in a later period, but not avoidance.