Perhaps you have seen one of those TV ads about identity theft protection? I would suggest you pay attention to the next one that comes on TV or Radio; you may soon need their services! A new draconian law passed by our beloved Congress will soon require businesses to report to the Internal Revenue Service virtually anything you sell them over $600.
Part of the new reporting requirements is that the business will be required to get your Social Security Number as part of the information they will have to pass on to the IRS. Effectively your SSN is going to be available to more people, thus making theft of your more probable.
Normally I refrain from injecting my opinions into my coin collecting articles. If you want Op-Ed pieces there are plenty of places to view and read them. But this is one issue I believe that is going to affect all of us, no matter what hobbies we pursue if any.
This new tax reporting measure was hidden within the new Health Care Law that was recently passed this year. If you ever wondered how they were going to pay for this Universal Health Care, now you know one of the ways!
So how does this new requirement affect you as a stamp collector? If you sell anyone over $600 worth of coins over the course of a year, you will be required to report this information to the IRS and capture the SSN and other pertinent information from the person you sold the stamps to. Plus you will have to report this information on your tax return.
Now I am not advocating tax evasion here. But there is a great difference between what you the private person considers “taxable” income to be and what the IRS determines to be “taxable.” So it is entirely possible to have the IRS knocking on your door for something you didn’t even think of reporting!
It is going to be up to YOU to prove to the IRS that not all of your transactions were “taxable.” For most of us, “revenue” or “income” is something that we earn via labor such as from a job. The exchange of something that you already own for cash is likely more of a swap or trade in your mind.
Perhaps not so to the IRS. From their perspective, you have taxable income that will be needed to be reported with this upcoming new tax threat. It is my understanding that this new requirement goes into effect on Jan 1, 2012.
Recent attempts to get this new tax reporting requirement have failed in Congress. As a concerned citizen, I suggest that you contact your respective Congressional Representatives, both Senate and House. If enough of us become squeaky wheels, Congress will have to address this issue before the law takes effect on January 1, 2012