Will proposed IRS rule kill bag and bag CRHing?

[Ben Cartwright SASS]

I don't know if you have heard about the new proposal before Congress (proposal not law yet) to reduce the amount reported by banks to the IRS from $10,000 to $600?

A friend of mine who has a coin store routinely deposits and withdraws over $10,000 and every time he does the IRS is notified and he is asked about who what where when. Biden and the IRS is gaying they are going to make it $600. Everytime you deposit or withdraw $600 the IRS would be notified and the IRS will look for patterns and are you declaring this money on your taxes or are you using it to be a drug dealer.

For me that will mean no more coin roll hunting because I routinely withdraw $1,000 or $2,000 a week and get coins search them and then deposit the money again by depositing the coins back in the bank. I could look like I am buying drugs and then selling them and depositing the money but the big thing is

I have to deposit the coins back in the bank so I have money to get the next batch. When I cash the coins in at a coin counter that is free for depositors they take my account number and make it a deposit and withdrawal, that is why they charge none account holders, or coinstars, charge a 10% fee on each batch of coins. Can't afford those fees.

Yes I can deposit $400-$500 at a time but they are also going to monitor all accounts that have over $600 in it and they will be monitored.

An example, you sell me one of your guns for $700 and I give you a check, or send money via paypal, you would be flagged by the IRS for getting $700 of income. Basically any deposit of meny could be considered income and taxable.

This will be interesting and scary if it passes

 

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[Scott (Mich)]

Yeah, this new potential law is insane. I mean if the IRS doesn't have enough staff to keep track of things now, I cannot imagine what will happen if their paperwork increases one thousand-fold.

Six hundred bucks? They may as well have the IRS take over every financial institution just to keep tabs on all of us.

So does this mean that the government has given up on ever getting tax money out of the wealthy, and are now going after the middle class? or what's left of the middle class anyways.

Imagine having a garage or yard sale and making over $600. Hmm I guess that it is income that needs to be declared.

I wonder how many people will just now go to using cash and keeping cash from being deposited/taxed? That garage sale money - instead of depositing and losing 20% to taxes, just keep that money at home and use it for groceries or whatever.

Yeah, the only money I would deposit would be my paycheck, which is automatic anyways.

Yep, this really puts the screws to us coin roll hunters.

Hopefully this idea will get shot down.

 

[Treasure_Hunter]

Yeah, this new potential law is insane. I mean if the IRS doesn't have enough staff to keep track of things now, I cannot imagine what will happen if their paperwork increases one thousand-fold.

Six hundred bucks? They may as well have the IRS take over every financial institution just to keep tabs on all of us.

So does this mean that the government has given up on ever getting tax money out of the wealthy, and are now going after the middle class? or what's left of the middle class anyways.

Imagine having a garage or yard sale and making over $600. Hmm I guess that it is income that needs to be declared.

I wonder how many people will just now go to using cash and keeping cash from being deposited/taxed? That garage sale money - instead of depositing and losing 20% to taxes, just keep that money at home and use it for groceries or whatever.

Yeah, the only money I would deposit would be my paycheck, which is automatic anyways.

Yep, this really puts the screws to us coin roll hunters.

Hopefully this idea will get shot down.

They want to hire 60,000 new IRS agents to accomplish this, guess who gets to pay their salary? We will get to pay to have our rights violated, something socialist love to do.

 

[GMan00001]

I have a few words of advice if you want to keep CRH after the rules are in place.

Keep records of every time you buy or dump coins at the bank so you have a history should you ever get audited to prove that you didn't have any profit.

I don't actively CRH at present, but when I did I would usually just cash in my coins for bills. I would guess 99% of the time just showing them my debit card was sufficient to get the cash back (i.e., no records were created). Whether you can do this or not will depend on bank policy and the teller.


If this gets enacted into law, there will be a lot of people who will just live in either an all cash or partial cash mode. If they make cash on the side, they will just use the cash to pay groceries, put gas in their car, or other non-traceable activities and limit their bank transactions to pay their "official" bills.

Also forget about writing checks or using electronic transactions to give cash as a gift as it will appear as "income" and may cause the person receiving your gift to be audited.

 

[malenkai]

I don't think it will shut down CRHing, just make it more of a hassle. As long as you are doing nothing illegal, and keep good records, you should at least stay out of the slammer. Yes, the prospect of the feds showing up at your door for basically doing a hobby seems pretty bad, but in reality, pretty much every account likely has transactions in excess of $600, so the odds of them targeting you, even if they add 80,000 agents, remain low, at least one would think. Just keep good records is what I would do.

I work for myself and have been audited by the IRS twice. I do nothing illegal, and keep good records. I show up with a box of records, explain the items in question, and all is good except I've lost two days of my life explaining to the idiot on the other side of the desk how my return is legal. I suspect that this will be something like that, just an unfortunate and unnecessary bit of more hassle.

And lets face it -- they are not going to balance the budget finding fraud in $600 transactions. They are going for little fish there, and they will figure out what a waste of time that is eventually.

 

[Ben Cartwright SASS]

one thing I have done is I have $2,000 in cash that I use to get boxes and bags and have had the same $2,000 on my desk for 4 years, as I find silver I replace the $10 or $20 of coins that I kept so no records
BUT
I will check with each bank the next time I dump to see if they record the activity, coins in, cash right out, if yes don't use that bank...

 

[port ewen ace]

every landlord will now drop the rent to $599.99,
the payment on your "LUGGZERIE" car will also be that,
even new sneakers will now cost less---
just don't ever again buy a new mattress---- they will come for you with "military style" assault weapons and "armored" assault vehicles
---
just remember--- "you asked for it---- you got it"---
don't ask for it again---that would be STOOOOPIDIO

 

[malenkai]

just don't ever again buy a new mattress---- they will come for you with "military style" assault weapons and "armored" assault vehicles

Certainly don't pull the tag off that mattress

You laugh, but we had a case right here in Chester County where they did just that. The feds raided a speed shop with armed personell from the EPA. I'm not a motorhead and don't really know what speed shops do, but apparently the feds did not like whatever it was they were doing. Seems a bit over the top to bring guys with guns in when having your own vehicle modified, BWDIK? I'll admit I'm a bit of an audiophile, and spend quite a bit of time and money on my home sound system. Perhaps someday I'll tweak the sound system this way or that way and feds will show up on my doorstop with guns. I guess we'll see.

 

[port ewen ace]

it was the best of times --- then...... it was the worst of times🤡-------

can anyone relate

 

[Ben Cartwright SASS]

guillotine guillotine

 

[augoldminer]

Six hundred bucks? That is not even rent for many people.
If you are on social security are they going to try to tell you what you can buy.
If you buy a $700 dollar metal detector and decide it does not work for you and you resell it for $650 will they then try to collect taxes from you even if you lost money.
If you bought a $1000 dollar metal detector and find a $600 dollar gold nugget will they try to collect taxes from you for a hobby.

 

[jrf30]

If you bought a $1000 dollar metal detector and find a $600 dollar gold nugget will they try to collect taxes from you for a hobby.

yes. If you sell the nugget, absolutely yes. If it is more than $400 in a year a hobby must be reported as income. So yes.

 

[Ben Cartwright SASS]

you might not be able to split your accounts up ($6,000 into 12 accounts) since you need to use your SS number to open an account and they may combine the records.

Why do you think that under Obama they built a massive computer center in Utah?

 

[Ohiogoldfever]

In my so humble opinion we are running the risk of loosing cash in our society largely because people have this “keep money in the bank” mentality.

Three things that can’t be trusted in our world. Governments, banks and lawyers. So naturally everyone is in a big hurry to put all their cash in the hands of government tied Financial institutions with teams of lawyers to protect them from their patronage.

You guys ever heard about the bail in laws passed after the 08 crash? If not I’d suggest you do some reading to help you understand how to protect yourselves.

Withdraw everything you don’t need to keep in the bank. Of course it requires you are creative with the way you protect it but it’s always a good idea to have a fair bit of cash on hand.

 

[RTR]

Sounds like time to pull $500.00.. out on the hour, every hour..until the account has no funds.

 

[ARC]

I think you all will find the following article interesting...

Don’t Believe The Hype – Biden’s $600 Tax Plan Won’t Force You to Report All Venmo Transactions to the IRS

There has been a flurry of furious cash app users this past week angrily responding to rumors of President Joe Biden's new tax reporting plan requiring taxpayers to report all Venmo and cash app...

www.yahoo.com

 

[Ben Cartwright SASS]

Interesting article, if you are going to sell anything that totals over $600 (I didn't catch if that is in a year or not) you will have to report it.
Say you have a Camper or car and rather than junk it you sell it for $1,000 you will have to report or have it reported and get a 1099K
That is actually what you are supposed to do now, you are supposed to report all income and income isn't just money made by working but it is yard sales, selling your old car, selling anything you own.

 

[GMan00001]

Interesting article, if you are going to sell anything that totals over $600 (I didn't catch if that is in a year or not) you will have to report it.
Say you have a Camper or car and rather than junk it you sell it for $1,000 you will have to report or have it reported and get a 1099K
That is actually what you are supposed to do now, you are supposed to report all income and income isn't just money made by working but it is yard sales, selling your old car, selling anything you own.

That is related to the other bill that is already law whereas the one being discussed at the top is not yet law.

You will only get a 1099 if you sell the camper in your example using a third party such as ebay or paypal goods and services. If you sell it for cash, no 1099. And that is a single transaction in a year. It used to be 200 transactions and $20,000 before they'd 1099 you. I am not sure how to handle it in your camper example, but if you were to buy and sell coins (or other collectibles), only the profit should be taxable as that is all that is income.

In the discussion that started this thread, if you got paid for the camper with either a $1000 check or $1000 in cash and put the money in the bank, that is what the IRS would be looking for as it is an extra $1000 that was not from your "wages".

 

[Ohiogoldfever]

That is related to the other bill that is already law whereas the one being discussed at the top is not yet law.

You will only get a 1099 if you sell the camper in your example using a third party such as ebay or paypal goods and services. If you sell it for cash, no 1099. And that is a single transaction in a year. It used to be 200 transactions and $20,000 before they'd 1099 you. I am not sure how to handle it in your camper example, but if you were to buy and sell coins (or other collectibles), only the profit should be taxable as that is all that is income.

In the discussion that started this thread, if you got paid for the camper with either a $1000 check or $1000 in cash and put the money in the bank, that is what the IRS would be looking for as it is an extra $1000 that was not from your "wages".

Well I earn the money and pay taxes on it, then I buy a car with it and pay taxes on that, drive the car and pay taxes on license and fuel, then after years of service and it’s having generated thousands and thousands in tax dollars I go to sell it and have to report it as income that I have to pay taxes on again... oooh, and the buyer has to pay taxes to transfer it to themselves.

At least our homeless are fed, schools are well funded and emergency services have all the money they need.

Does that sum it up? Sounds like a a right forking to me.

 

[RTR]

If this nutzzzz idea becomes law....watch the price of Gold !