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Without a social security number the IRS would need to call Rosie to ask about the canceled checks with her name on them. If Rosie /husband declared the 8 grand fine if not they'll be in trouble.
I suspect Rosie doesn't declare all her income. Why? Because I have vendors who provide a proper receipt and those like Rosie who prefer cash but will accept a check.
This where the Biden Admin taps into undeclared income but what then? Fine the couple? They likely have very little.
I'm self-employed and understand the importance of being able to verify income and repairs made. It's not me the IRS will find undeclared income. It's those like Rosie.
You do realize that intentional failure to file a 1099 is a criminal offense, correct?
No. Trump isn't the one trying to put a microscope on our bank accounts. That's creepy Joe's administration doing that. I am not comfortable with a bunch of criminals trying to angle their way into our bank accounts.
Ok. You're completely blinded by partisanship, as it's clearly been shown
Got it
You do realize that intentional failure to file a 1099 is a criminal offense, correct?
I received $7200 in 2020 for *teaching ESL classes to students overseas via zoom classes. Payments were sent to me in cash. I reported this income and my tax accountant filed it under: Schedule SE self employed income. Under form 8995 QBI simplified deductions I had zero. (Although I already qualify for SS and Medicare this income will help increase my social security benefits.)
I also received 20k from various investments. 1099 were provided by banks.
Now...the bulk of my income is from rental property. I took over my rentals from property management 1/1/20. I own six rentals and work maybe one hour a week on them. Something goes wrong, I call a vendor and meet him at the property. Show them the problem and leave. When the work is complete I either receive an invoice by email or return to the property and give the vendor a check. A property is vacant I'll spend maybe 5 hours a week meeting vendors at the house getting it rent-ready.
All in all I spend less than 250 hours a year on my rentals.
Bottom line is: Do you intend to take the QBI deduction because you consider your rentals a business? Or, do you consider it to be a passive activity?
My rentals are a passive activity and therefore I am not required to provide my vendors with a 1099.
Thanks to Senator Joe Manchin I don't need worry about the IRS digging around my bank accounts and possibly flagging my return. Then having to hire a tax accountant to defend myself. I don't earn much over 140k a year and there's nothing out of the ordinary regarding my rental expenses.
* I taught ESL for 30 years before returning to the US in 2019 to take over my rental properties.
Do you realize how that much information would literally bombard the IRS with way too much info, they wouldn't be able to work through it!
Thus far this year I've written maybe 25 personal checks with seven over $600. One was for $850 to repair my car and the other related to my rental property. Including a check for $2800 and another for $1600. In the memo section of each check I write what the money is for.
Nevertheless, if the Biden Admin gets its way I could possibly be contacted by the IRS wanting to discuss these checks.
The IRS job is not to keep you "safe". It is to collect taxes to pay for things that do keep you safe like the Military.
if the job of the IRS is to collect taxes, then the IRS has to know to whom I paid money. If I withdraw $10,000 from my acct in cash to buy a horse. I then give the owner of the horse the $10,000 in cash, what he/she does with that 10,000 is their business. If they dont declare it as income, not my problem. The only way the IRS is going to know is if they come and harass me about the $10,000 withdrawal. So according to the proposal, what I do with my money is not my business. Everything must be approved and accounted for to the govt. My example is not far fetched. Happens alot.
if the job of the IRS is to collect taxes, then the IRS has to know to whom I paid money. If I withdraw $10,000 from my acct in cash to buy a horse. I then give the owner of the horse the $10,000 in cash, what he/she does with that 10,000 is their business. If they dont declare it as income, not my problem. The only way the IRS is going to know is if they come and harass me about the $10,000 withdrawal. So according to the proposal, what I do with my money is not my business. Everything must be approved and accounted for to the govt. My example is not far fetched. Happens alot.
The IRS doesn't need to know a thing about anyone to collect taxes.
They just chose the most invasive, cumbersome, expensive option for getting something done. Why? Most likely to prop up jobs that produce nothing of value whatsoever to the economy.
We spend an estimated $400 billion/year on tax compliance. That productivity belongs in the economy being reinvested into innovation. The cost of running the IRS, $12.3B, is on top of that figure. https://taxfoundation.org/compliance...s-regulations/
The IRS job is not to keep you "safe". It is to collect taxes to pay for things that do keep you safe like the Military.
You actually believe that? LOL. Their job is to make taxpayers' lives miserable.
Again, replace all federal income tax with a VAT. That way nobody escapes taxes, and I don't have to put more of my paycheck to useless politicians and liberal anti- working class govt trash.
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