[meteorite-list] For those of you that use PAYPAL I got this email today.

From: Shawn Alan <photophlow_at_meteoritecentral.com>
Date: Tue, 31 Jan 2012 02:11:42 -0800 (PST)
Message-ID: <1328004702.84021.YahooMailNeo_at_web160101.mail.bf1.yahoo.com>

Hello Listers

This is
what I have found out about the post I posted and sorry for being off topic but
I think it was important to post because I am stupid when it comes to tax laws
and such and people on the List use Pay Pal as a form of sending and receiving money.

From
what I have read, in 2008 during the Bush administration a measure was sneaked
in to health reform bill and it stated that if you generate $20,000 and have
over 200 transactions with pay pal, amazon and other companies that deal with
credit cards, your deemed as a small business in the IRs eye with this new
reform that took effect in 2011.

This
means if you?. Lets say invested $100,000 in NWA?s meteorites and turned around
and sold them for $50,000 in the past you?re deemed as a small business.

Now the
fun part, if you?re a small business in 2012 for purchases or expenses made
that total $600 or more in a calendar year with any given company, person, corporation,
auction house, coffee house, restaurant, hotel, that is related to your business
you have to file a 1099 misc. To better explain this I found this from a blog
and this is what someone had to say about the 1099 misc. form?..

?If it was just large purchases such as hotels/airlines/car
rentals... it wouldn't be so bad.

But it's for every small business. To put this in perspective, think gas
stations. A company will have to give a 1099 to a gas station if they get more
than $600 there in a year. Business travelers will have to get the Tax IDs of
every gas station, because, who knows, the cumulative purchases at that gas station
by all travelers of the company could exceed $600/year, making it reportable.
Worse yet... it's not per gas station, it's per company. If a company owns
multiple gas stations, then it would be the cumulative purchases at those
stations to cause the reporting.

What does this mean? We as travelers will have to collect tax IDs of EVERY gas
station, restaurant, coffee shop, where we make a business expense, because the
company may have to 1099 them. Then we will have to enter all those tax ids in
our expense reports. And someone in accounting will have to reconcile all those
records and issue a truckload of 1099s at the end of the year. And fix all the
errors.

But wait... if the gas station fails to give a tax ID, we may have to withhold
20% of the payment right then and there. Oh joy!

This law is so poorly thought out that I don't think it can be implemented.
These 1099 provisions will surely have to be revised or repealed.?

Now I am not sure, but I bet
every 1099 form you have to file for each company there is a fee and lets
say that fee is $20 and you had 50 different vendors that year, you could be
paying $1000 in fee alone. To top it off this bill/measure was pushed in by special
interest groups/ lobbyist that are for big corporate giants. It seems the 1099
misc. is exempt for those big companies.

Shawn Alan
IMCA 1633
eBay Store
http://www.ebay.com/sch/ph0t0phl0w/m.html?




________________________________
From: Galactic Stone & Ironworks <meteoritemike at gmail.com>
To: Don Giovanni <don.giovanni50 at yahoo.com>
Cc: Shawn Alan <photophlow at yahoo.com>; Meteorite Central <meteorite-list at meteoritecentral.com>
Sent: Monday, January 30, 2012 6:15 PM
Subject: Re: [meteorite-list] For those of you that use PAYPAL I got this email today.

Render unto Caesar what is his.

I wonder if General Electric, FedEx, Verizon, or Bank Of America will
get one of these forms?? Oh wait, nevermind, those companies pay zero
income tax.

Shawn, maybe if you were a multi-billion-dollar corporation, then you
wouldn't get that form from PayPal.? Better step up the sales, hide
your assets offshore, and hire a team of tax attorneys to convince
Caesar that you shouldn't pay a thin dime.? ;)


On 1/30/12, Don Giovanni <don.giovanni50 at yahoo.com> wrote:
>
> On Jan 30, 2012, at 12:12 PM, Shawn Alan wrote:
>
>> ....paypal will be send this to the IRS not taking inconsideration if what
>> you sold was at a lose.
>
> Well, yes....but isn't pretty much the same as, say, selling a stock in the
> stock market?? The IRS is informed of the stock selling price only, and it's
> up to you to then fill out your taxes with the buy-price factored in, so
> that you're only paying tax on the profit.? Or loss, which can then be
> claimed.
>
> I'm assuming the tax return would be filled out the same way, for meteorite
> sales, am I wrong?
>
>? ? DG
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Received on Tue 31 Jan 2012 05:11:42 AM PST