Taxing America to Prison

Corporate Statism and the Prince John Syndrome

From closing down yard sales, to labeling the widow finally selling the wedding bands a precious metals trading company; the 15,000+ additional ‘new growth’ jobs, in the IRS collection agency division, will be targeting the middle, lower and poor citizens that are selling their possessions in order to survive. Welcome to the gulag-ghetto. 

Did you make $600 selling an old gold ring? Poof your a Business and owe the Fed.

Congress slipped in a provision that requires every non-tax-exempt business in the US to provide by January 31 of each year an information return (usually, a 1099) to every payee to which it makes aggregate payments of $600 or more during a calendar year, effective for 2012.

The May 2010 issue of The Journal of Accountancy provides a short summary of this and other health-care and non-health-care related provisions of the Act.

SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.

(a) IN GENERAL.—Section 6041 of the Internal Revenue Code

of 1986 is amended by adding at the end the following new subsections:

‘‘(h) APPLICATION TO CORPORATIONS.—Notwithstanding any

regulation prescribed by the Secretary before the date of the enactment

of this subsection, for purposes of this section the term ‘person’

includes any corporation that is not an organization exempt from

tax under section 501(a).

‘‘(i) REGULATIONS.—The Secretary may prescribe such regulations

and other guidance as may be appropriate or necessary to

carry out the purposes of this section, including rules to prevent

duplicative reporting of transactions.’’.

(b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS.—

Subsection (a) of section 6041 of the Internal Revenue Code of

1986 is amended—

(1) by inserting ‘‘amounts in consideration for property,’’

after ‘‘wages,’’,

(2) by inserting ‘‘gross proceeds,’’ after ‘‘emoluments, or

other’’, and

(3) by inserting ‘‘gross proceeds,’’ after ‘‘setting forth the

amount of such’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to payments made after December 31, 2011.

     TITLE 26 – INTERNAL REVENUE CODE
      Subtitle F – Procedure and Administration
       CHAPTER 61 – INFORMATION AND RETURNS
        Subchapter A – Returns and Records
         PART III – INFORMATION RETURNS
          Subpart B – Information Concerning Transactions With Other Persons

Sec. 6041. Information at source

    (a) Payments of $600 or more
      All persons engaged in a trade or business and making payment in
      the course of such trade or business to another person, of rent,
      salaries, wages, premiums, annuities, compensations, remunerations,
      emoluments, or other fixed or determinable gains, profits, and
      income (other than payments to which section 6042(a)(1),
      6044(a)(1), 6047(e), 6049(a), or 6050N(a) applies, and other than
      payments with respect to which a statement is required under the
      authority of section 6042(a)(2), 6044(a)(2), or 6045), or $600 or
      more in any taxable year, or, in the case of such payments made by
      the United States, the officers or employees of the United States
      having information as to such payments and required to make returns
      in regard thereto by the regulations hereinafter provided for,
      shall render a true and accurate return to the Secretary, under
      such regulations and in such form and manner and to such extent as
      may be prescribed by the Secretary, setting forth the amount of
      such gains, profits, and income, and the name and address of the
      recipient of such payment.
    (b) Collection of foreign items
      In the case of collections of items (not payable in the United
      States) of interest upon the bonds of foreign countries and
      interest upon the bonds of and dividends from foreign corporations
      by any person undertaking as a matter of business or for profit the
      collection of foreign payments of such interest or dividends by
      means of coupons, checks, or bills of exchange, such person shall
      make a return according to the forms or regulations prescribed by
      the Secretary, setting forth the amount paid and the name and
      address of the recipient of each such payment.
    (c) Recipient to furnish name and address
      When necessary to make effective the provisions of this section,
      the name and address of the recipient of income shall be furnished
      upon demand of the person paying the income.
    (d) Statements to be furnished to persons with respect to whom
        information is required
      Every person required to make a return under subsection (a) shall
      furnish to each person with respect to whom such a return is
      required a written statement showing -
        (1) the name, address, and phone number of the information
          contact of the person required to make such return, and
        (2) the aggregate amount of payments to the person required to
          be shown on the return.
         The written statement required under the preceding sentence shall
         be furnished to the person on or before January 31 of the year
         following the calendar year for which the return under subsection
         (a) was required to be made.  To the extent provided in regulations
         prescribed by the Secretary, this subsection shall also apply to
         persons required to make returns under subsection (b).
    (e) Section does not apply to certain tips
      This section shall not apply to tips with respect to which
      section 6053(a) (relating to reporting of tips) applies.
    (f) Section Does Not Apply to Certain Health Arrangements.–This
      section shall not apply to any payment for medical care (as defined in
      section 213(d)) made under–
        (1) a flexible spending arrangement (as defined in section
          106(c)(2)), or
        (2) a health reimbursement arrangement which is treated as
          employer-provided coverage under an accident or health plan for
          purposes of section 106.
    (g) Nonqualified Deferred <> Compensation.–
      Subsection (a) shall apply to–
       (1) any deferrals for the year under a nonqualified
        deferred compensation plan (within the meaning of section
        409A(d)), whether or not paid, except that this paragraph shall
        not apply to deferrals which are required to be reported under
        section 6051(a)(13) (without regard to any de minimis
        exception), and
       (2) any amount includible under section 409A and which is
        not treated as wages under section 3401(a).

2011: The Year Of The Tax Increase

In a previous article entitled “Taxed Enough Already!”, we listed just a few of the taxes that Americans have to pay each year….

Accounts Receivable Tax

Building Permit Tax

Capital Gains Tax

CDL license Tax

Cigarette Tax

Corporate Income Tax

Court Fines (indirect taxes)

Dog License Tax

Federal Income Tax

Federal Unemployment Tax (FUTA)

Fishing License Tax

Food License Tax

Fuel permit tax

Gasoline Tax

Gift Tax

Hunting License Tax

Inheritance Tax

Inventory tax IRS Interest Charges (tax on top of tax)

IRS Penalties (tax on top of tax)

Liquor Tax

Local Income Tax

Luxury Taxes

Marriage License Tax

Medicare Tax

Payroll Taxes

Property Tax

Real Estate Tax

Recreational Vehicle Tax

Road Toll Booth Taxes

Road Usage Taxes (Truckers)

Sales Taxes

School Tax

Septic Permit Tax

Service Charge Taxes

Social Security Tax

State Income Tax

State Unemployment Tax (SUTA)

Telephone federal excise tax

Telephone federal universal service fee tax

Telephone federal, state and local surcharge taxes

Telephone minimum usage surcharge tax

Telephone recurring and non-recurring charges tax

Telephone state and local tax

Telephone usage charge tax

Toll Bridge Taxes

Toll Tunnel Taxes

Traffic Fines (indirect taxation)

Trailer registration tax

Utility Taxes

Vehicle License Registration Tax

Vehicle Sales Tax

Watercraft registration Tax

Well Permit Tax

Workers Compensation Tax