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Pastimes : Brokerage-Chat Site Securities Fraud: A Lawsuit -- Ignore unavailable to you. Want to Upgrade?

To: CountofMoneyCristo who wrote (1230)	6/24/2003 5:56:18 PM
From: Yogizuna	Read Replies (1) \| Respond to of 3143

Wow, that is really underhanded dirty back stabbing, trying to get you to pay $50 million in fake back taxes! It's unbelievable what some folks will do when they get a bit emotional... :^)

To: CountofMoneyCristo who wrote (1230)	7/11/2003 1:35:36 PM
From: Dave O.	Read Replies (1) \| Respond to of 3143

You stated: "These forms purported to represent my "broker-and-barter" income for 1998 and 1999 to be...more than $125 million. When I found out I called the IRS and they informed me, and that their records show I owe $50 million in back taxes!" I don't know where you got the word "income" (above) from. "Proceeds" are different from "income". Do you understand what a 1099 form represents? In any event, the text below explains what is reported on the form 1099-B ... and it states that it up to YOU to determine the cost basis. (i.e. It is the customer's responsibility to calculate gains or losses). If you or your accountant failed to calculate the cost basis of the stock trades in question and did not report any cost basis on Schedule D (assuming your trading was not a full time business endeavor) then perhaps the IRS had to assume the cost basis was zero and thus, the tax liability would be whatever it was based on tax rates at that time. Form 1099B - Titled "Proceeds from Broker and Barter Exchange." This form reflects all proceeds received from SELL trades in STOCKS only. This includes sell trades resulting from the exercise or assignment of stock options. Buy trades are not reflected in the 1099B. The 1099B form is not a reflection of capital gains or Profit & Loss (P&L). It is the customer's responsibility to calculate gains or losses. No option trade information is included on the 1099B. Commissions have been deducted from the trade proceeds reported on the 1099B. And yes, I continue to find humor in many of the posts here.