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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (580782)	8/12/2010 11:46:08 PM
From: Brumar89	Read Replies (1) \| Respond to of 1577167

Since you know nothing about the question yourself, why are you posting about it? Why would income not reported to the IRS be impossible to hide from auditors. Because there are paper and electronic records. Account statements showing the transactions. Both individual and brokerage account records can be demanded. ...what would trigger an audit in the first place. I don't know what criteria the IRS uses. But audits take place and if someone is simply not reporting income, it only takes one audit to send them to prison. And if 1099's are not needed for those guys, why do you have to have any...? I think you should support your claim that hedge fund trades and option trades aren't reported on 1099's. What evidence of that do you have? Other than your guess? Aren't you trustworthy?? Yep, but my investment sales are reported on 1099's. I just don't have option trades. And I didn't say there are traders not paying any taxes...my quess they are not paying all they owe..that tough to understand? I guess you cheat on your taxes. That you "guess" the "big boys" cheat a lot, that you think there's some leeway involved in enforcement, and that you think the IRS couldn't find out ..... all suggests that you're likely to be a cheater. Sounds like rationalization to me.

To: J_F_Shepard who wrote (580782)	8/13/2010 12:05:52 AM
From: i-node	Read Replies (1) \| Respond to of 1577167

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.