SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: J_F_Shepard who wrote (580782)8/13/2010 12:05:52 AM
From: i-node  Read Replies (1) of 1577201
 
Why would income not reported to the IRS be impossible to hide from auditors

Because in any significant audit every brokerage account statement will be part of the cash analysis, just like every bank statement.

....what would trigger an audit in the first place.

Lots of possibilities. You might make a mistake on your return, someone else might make a mistake on theirs that would trigger an audit of yours, you might take deductions in high-risk categories (EBE, T&E, etc.), you might be a partner/S-Corp shareholder.

Or you might catch a dread TCMP exam.

And if 1099's are not needed for those guys, why do you have to have any...?

Options are not regulated the same as securities and options transactions occur all the time between private parties. Further, they are more complicated than straight sales since there are qualified and nonqualified options. And there is the difficulty in determining when, precisely, the gross proceeds arose (the easy cases are sales and expirations of calls, but spreads and straddles in their various combinations are far more complex and can't always be reflected in a 1099). So, there are numerous reasons why option transactions are not treated like normal capital asset sales for 1099B purposes. But the one reason that matters is that the regulations don't require it.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News