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Moot

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Another signature, hand crafted, artisan piece from the Minneapolis StarTribune. It starts off with the obligatory misleading doom and gloom headline and two cutlines. One a quote attributed to nobody. Then two paragraphs about the need to expand the ICU accompanied with irrelevant scare statistics.

The third paragraph lays waste to all that came before. One of the tenets of Turd Journalism is to withhold the truth or some semblance of the truth until very near the end of the article where most readers have moved on to the next headline. How could the editors of such a prestigious rag like the StarTribune allow the truth to shine in the 3rd paragraph?

 

coalminer

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So I was watching Fox news last night, and the Five were talking about the IRS rules that are being proposed, and they either dont understand what is being talked about or they are outright lying.

They keep saying that the IRS wants to be notified of any transaction over $600, that is not true. The law already states that if a company pays someone over $600 they must issues a 1099 to the person and send it to the IRS.

What they what is to total the amount of deposits and withdrawals for each account so they can match it up to what is being reported for income. If you show 40k income and have 80k in deposits, that is going to raise a red flag.
 

muttly

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So I was watching Fox news last night, and the Five were talking about the IRS rules that are being proposed, and they either dont understand what is being talked about or they are outright lying.

They keep saying that the IRS wants to be notified of any transaction over $600, that is not true. The law already states that if a company pays someone over $600 they must issues a 1099 to the person and send it to the IRS.

What they what is to total the amount of deposits and withdrawals for each account so they can match it up to what is being reported for income. If you show 40k income and have 80k in deposits, that is going to raise a red flag.
Don’t some people inherit money that isn't counted as income like life insurance?
 

coalminer

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Don’t some people inherit money that isn't counted as income like life insurance?
Exactly, there are plenty of times when there will be extra money that is deposited but considered non-taxable, that is however very easy to prove.

Now the question is, will there be so many times they ask for documentation that it costs more to enforce the rule that taxes it collects? Only time will tell.
 

danthewolf00

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Democrats always want more taxes and Republicans always want to balance the budget....you don't need 500 more irs agents just switch to a flat tax and simplify the tax code so the average American can understand it without a college degree in tax code.
 
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coalminer

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Democrats always want more taxes and Republicans always want to balance the budget....you don't need 500 more irs agents just switch to a flat tax and simplify the tax code so the average American can understand it without a college degree in tax code.
I agree but you know the people at the top of the food chain will never allow that since they will be the ones who pay more taxes, the screwed up rules benefit them.
 
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Turtle

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They keep saying that the IRS wants to be notified of any transaction over $600, that is not true. The law already states that if a company pays someone over $600 they must issues a 1099 to the person and send it to the IRS.
That's the 'distraction" talking point. That's the "nothing to see here, move along" talking point. The IRS won't be notified of individual transactions over $600, but they will be notified of total annual transaction amounts of the total amount of money that went in and out of bank, loan and investment accounts if those accounts hold a value of at least $600, or if the total is at least $600 in a year.

They claim it's to prevent the ultra wealthy from having multiple accounts and playing a shell game with their money. But it allows the IRS to compare all money in and out of all of your accounts with the tax return to see if an audit should take place. But it also gives the IRS access to your individual transactions if they want to take a closer look, if your bank account has ever had more than $600 flowing in or out.

Some media outlets have focused on eBay and Etsy sellers, again, as a distraction, noting the current law has a threshold of 200 transactions and $20,000 before the IRS is notified and you have to report that income. The new proposal is $600. So this will prevent those ultra wealthy eBay sellers from avoiding paying taxes on their hidden income, as all of their banking and financial accounts will be added together.

But basically, if you claim adjusted gross income of $50,000 a year but spent & 60,000 on stuff, the IRS wants a closer look at your transactions.
 

Pilgrim

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So I was watching Fox news last night, and the Five were talking about the IRS rules that are being proposed, and they either dont understand what is being talked about or they are outright lying.

They keep saying that the IRS wants to be notified of any transaction over $600, that is not true. The law already states that if a company pays someone over $600 they must issues a 1099 to the person and send it to the IRS.

What they what is to total the amount of deposits and withdrawals for each account so they can match it up to what is being reported for income. If you show 40k income and have 80k in deposits, that is going to raise a red flag.
That's the 'distraction" talking point. That's the "nothing to see here, move along" talking point. The IRS won't be notified of individual transactions over $600, but they will be notified of total annual transaction amounts of the total amount of money that went in and out of bank, loan and investment accounts if those accounts hold a value of at least $600, or if the total is at least $600 in a year.

They claim it's to prevent the ultra wealthy from having multiple accounts and playing a shell game with their money. But it allows the IRS to compare all money in and out of all of your accounts with the tax return to see if an audit should take place. But it also gives the IRS access to your individual transactions if they want to take a closer look, if your bank account has ever had more than $600 flowing in or out.

Some media outlets have focused on eBay and Etsy sellers, again, as a distraction, noting the current law has a threshold of 200 transactions and $20,000 before the IRS is notified and you have to report that income. The new proposal is $600. So this will prevent those ultra wealthy eBay sellers from avoiding paying taxes on their hidden income, as all of their banking and financial accounts will be added together.

But basically, if you claim adjusted gross income of $50,000 a year but spent & 60,000 on stuff, the IRS wants a closer look at your transactions.
But wait...there's more!

"A different but equally troubling $600 threshold has already been in place.
The American Rescue Plan Act of 2021, signed into law by Biden in March 2021, modified the IRS reporting requirement from $20,000 in aggregate payments and 200 transactions to a threshold of $600 in aggregate payments, with no minimum transaction number. That new rule becomes effective Jan. 1, 2022."

The article also claims the $600 threshold has been dropped from the bill - for now. But who knows what's really going to be in this bill? Pelosi has already said they've got to pass it to see what's in it (like Obamacare), but it's a safe bet they'll come back with a different threshold that allows them to snoop in everyone's bank account and monitor nearly every transaction. This would include my 12 year-old granddaughter's savings account.
 
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coalminer

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That's the 'distraction" talking point. That's the "nothing to see here, move along" talking point. The IRS won't be notified of individual transactions over $600, but they will be notified of total annual transaction amounts of the total amount of money that went in and out of bank, loan and investment accounts if those accounts hold a value of at least $600, or if the total is at least $600 in a year.

They claim it's to prevent the ultra wealthy from having multiple accounts and playing a shell game with their money. But it allows the IRS to compare all money in and out of all of your accounts with the tax return to see if an audit should take place. But it also gives the IRS access to your individual transactions if they want to take a closer look, if your bank account has ever had more than $600 flowing in or out.

Some media outlets have focused on eBay and Etsy sellers, again, as a distraction, noting the current law has a threshold of 200 transactions and $20,000 before the IRS is notified and you have to report that income. The new proposal is $600. So this will prevent those ultra wealthy eBay sellers from avoiding paying taxes on their hidden income, as all of their banking and financial accounts will be added together.

But basically, if you claim adjusted gross income of $50,000 a year but spent & 60,000 on stuff, the IRS wants a closer look at your transactions.
The people who they are trying to catch in lies with this law are already laughing at it, if they have not already figured a way around it, they will.
 

Turtle

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This is another one of those 'just open the door a little bit "laws, where they say it's one thing,' It's just two additional pieces of information!", but it opens the door for other things, including abuse. The current law of $20,000 of inflows and outflows and the 200 transaction reporting requirements give the IRS then access to individual transactions to determine if any taxes aren't getting paid. Lowering the threshold to $600 and 1 transaction just gives the IRS access to that many more accounts.
 
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