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

From: MexicoDoug <mexicodoug_at_meteoritecentral.com>
Date: Tue, 31 Jan 2012 13:32:51 -0500 (EST)
Message-ID: <8CEAE5DDF97DC9C-1B18-1DB19_at_Webmail-m118.sysops.aol.com>

In Mexico, this is the same system and it is even more complicated in
that not only is this an annual reporting requirement like the new US
rule, there is no minimum on it (unlike the $600 US minimum) - but that
is the least of the problems - each individual payment must be properly
documented with tax information and provided to the taxing authority,
for every single transaction.

It is a mindless burden and easily and widely evaded using cash and
skipping all the paperwork in selected tranactions of the total. Two
years ago, to combat this, the government put in a new law across the
board for individuals: Anyone depositing over $1,600 in a month in any
indiviuaol bank acount will pay 10% tax on the deposit, NO EXEMPTION
for anybody. MAGINE THIS. Perhaps you'd rather live in Mexico. Try
writing your congressman there and see haow far you get, with all due
respect to the honorable public servants cited.

"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. "

Certainly sounds like a very poorly managed small business to me. I
think I missed that partiular point.

"From what I have read, in 2008 during the Bush administration a
measure was sneaked
in to health reform bill"

 From what 've read, the USA can't pay for Obama's health care reform or
any other health care anyway, and one reason is widespread tax dodging
in the USA. Also that it was one of several proposals investigated
during the Bush tenure, but it passed on the politically so-called
Obamacare medical reform to help pay the bill . So apparently Obama
liked it enough?

" It seems the 1099 misc. is exempt for those big companies."

Big companies are regularly audited and already pay for expensive
systems which all properly report accounts payable, and usually the
process to become a supplier has a lot more red tape and forms than the
new law is asking. So why would you make them have two auditable
systems if they are not the problem? So (as Paul said) consumers can
ultimatey pay even more for goods?

Under Bush, I understand, several proposals were laid out. Why this
was selected, who knows. I vigorosly oppose it due to impositions on
privacy in that personal information must now be given to small
businesses which may not have priovacy policies in place and opens the
poitential to abuse ones personal financial information. Bush also
proposed another solution, which was just to denominate a 'business
bank account' through which all funds of the small business must pass
and calculate the change in balance on a gross basis. That's a much
better idea, IMO. I don't have a clue why no one was there to raise a
voice tp use that proposal instead of the one selected.

Kindest wishes
Doug





-----Original Message-----
From: Shawn Alan <photophlow at yahoo.com>
To: Galactic Stone & Ironworks <meteoritemike at gmail.com>; Don Giovanni
<don.giovanni50 at yahoo.com>
Cc: Meteorite Central <meteorite-list at meteoritecentral.com>
Sent: Tue, Jan 31, 2012 5:11 am
Subject: Re: [meteorite-list] For those of you that use PAYPAL I got
this email today.


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 01:32:51 PM PST