Results 1 to 4 of 4

Thread: for anybody who doubts that the US gov't is getting 'greedy' ...

  1. #1
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default for anybody who doubts that the US gov't is getting 'greedy' ...

    (snip)"A little–noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.

    Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by "offsetting," or withholding Social Security and disability payments.

    The Treasury currently withholds benefits of 3.1 million Social Security recipients to recover defaulted student–, farm– and small–business loans, unpaid income taxes, amounts veterans owe for health care, and other debts to the government.

    Previously, the U.S. hasn't been able to withhold Social Security payments to recover most debts delinquent for more than ten years.

    But a provision in the 2008 Farm Bill lifted the ten–year statute of limitations on the government's ability to withhold Social Security benefits in collecting debts other than student loans—for which the statute of limitations was lifted in 1997—and income taxes, where the limit remains 10 years.

    This means that a person who defaulted on a small–business loan in 1995, for example, and who is receiving Social Security could be notified that his benefits may be reduced each month until the debt, with interest, fees, and penalties, is paid. The Treasury can withhold 15% of the benefit, though it can't be reduced to below $750. Tax debts have no floor.

    The change will add more than $6 billion to the $75 billion in delinquent debt individuals owe the government, according to the Financial Management Service, the Treasury's debt collection unit.

    A Treasury spokesman says the new legislation "allows Treasury's Financial Management Service to collect older debts and levels the playing field so that all eligible debts, regardless of age, are subject to debt collection. Treasury expects this legislation will result in increased collections of $10 million per year in delinquent federal non–tax debt.""(snip)

    from

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: for anybody who doubts that the US gov't is getting 'greedy' ...

    ... quickly followed by this new directive ...



    (snip)"IRS to Track Online Sellers' Payment Transactions Beginning Next Year

    Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments.

    Purpose of Reporting

    The IRS believes that many online sellers fail to report their transactions. Some don't report because they mistakenly believe that Internet sales are invisible. Others do so because they are trying to evade taxes.

    The IRS has found that using information returns, such as W-2 forms for employees, Form 1099-MISC for independent contractors, and Form 1099-INT for bank interest, goes a long way toward improving the reporting of income. IRS computers can match income reported on these information returns with the income reported on tax returns.

    Who's Subject to Reporting

    All merchants who accept payments through credit cards, debit cards, gift cards and PayPal will receive information returns telling them - and the IRS - the gross amount of the merchant card transactions. This will be broken down month by month. While the form uses the word "card," the IRS has made it clear that this is interpreted broadly to include third-party network transactions (i.e., PayPal).

    Exception: Very small merchants won't be issued information returns. "Small" for this purpose means annual gross sales on merchant cards of no more than $20,000 or 200 or fewer transactions. In other words, reporting is required only if gross amounts for the year exceed $20,000 and there are more than 200 transactions.

    Mechanics

    As it now stands (proposed regulations have not yet been finalized), gross amounts reported for merchant transactions do not take into account any adjustments for credits, cash equivalents, discount amounts, fees, chargebacks, refunded amounts, or any other amounts. It will be up to sellers to report on their returns the full amounts reported to them and then make adjustments or explanations to account for differences in what is ultimately taxable to them.

    For example, a seller who is paid $1,000 by credit card for a particular transaction does not necessarily have $1,000 profit even though $1,000 will be included on Form 1099-K. The $1,000 must be reported so the return will match what's in the IRS computers, but this amount will then be reduced on the merchant's return by the cost of goods sold (what it costs for the inventory sold), merchant account fees, and other costs.

    Providing Your Tax ID Number to Processors

    Merchants will have to provide their federal tax identification numbers to the companies processing their transactions. If they fail to do so, they may become subject to "backup withholding," which means these companies will have to deduct and withhold income tax from reportable payments. Backup withholding won't go into effect until 2012."(snip)


    The implication here is that where large internet vendors like E-Bay are concerned, proceeds from individual sales by private individuals will have to be reported to the IRS ( so that E-Bay can avoid potential tax liability on the sale ). This in turn will mean that if an individual seller lists, say, a tanning bed which sells for $1,000 ... that E-Bay will wind up reporting $1000 in additional income against the seller's Social Security number. It then falls to the individual seller to prove to the IRS that the $1000 in sale proceeds was not pure profit ( i.e. coughing up the original receipt for the new tanning bed purchase ). Related fallout could consist of state tax dept's attempting to collect $70-$80-$90 in unpaid sales taxes from the individual seller of the $1000 tanning bed.

  3. #3
    Senior Member
    Joined
    Jan 2010
    Posts
    114
    Thanks
    0
    Thanked 11 Times in 11 Posts

    Default Re: for anybody who doubts that the US gov't is getting 'greedy' ...

    I almost always get an orwellian vibe when I read your posts here

  4. #4
    God/dess threlayer's Avatar
    Joined
    Aug 2003
    Location
    Syracuse
    Posts
    5,921
    Thanks
    369
    Thanked 419 Times in 290 Posts
    My Mood
    Fine

    Default Re: for anybody who doubts that the US gov't is getting 'greedy' ...

    I can't really call that greedy. It is just being (finally) circumspect and financially responsible.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

Similar Threads

  1. help i'm greedy!!
    By h0ttie in forum Camming Connection
    Replies: 13
    Last Post: 11-23-2011, 03:15 PM
  2. New club - having doubts
    By crystalize in forum Stripping (was Stripping General)
    Replies: 2
    Last Post: 02-02-2011, 06:41 PM
  3. Greedy Waitress!!
    By AudreyLeigh in forum Stripping (was Stripping General)
    Replies: 9
    Last Post: 10-01-2007, 08:50 PM
  4. Greedy New Mgr
    By lola025 in forum Stripping (was Stripping General)
    Replies: 5
    Last Post: 04-07-2006, 07:35 PM
  5. newbie doubts
    By angrychick420 in forum Newbie Board
    Replies: 9
    Last Post: 05-04-2005, 12:07 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •