The IRS Backtracks!
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One of the things I like to pride myself on at this program, what we do here at the Watchdog on Wall Street shows, if we screw up, we want to own it. We want to explain, oh, we got that statistic wrong, whatever it may be, whatever. I know major newspapers, they put the little correction section in very, very tiny print and they put it in the back of the paper. We don’t do that. Well, I did a big, big report yesterday on taxes and the IRS and I know I didn’t get it wrong, but I’ve got to correct it.
because in less than 24 hours, the IRS reversed itself and what they’re planning on doing. We talked about all of the various different pay services out there, Venmo, Zelle, whatnot, and how that they were gonna have to report to the IRS any transactions or all transactions above $600. And I’m laughing at this and saying, really?
the IRS is gonna be able to handle all of these 1099s. Do you have any idea how many of these things are gonna be utilized over the course of the year? And I think that they kind of said, you know what, we can’t handle it. And they backtracked. Yep, in less than 24 hours, I do the report, they backtracked, they are going to postpone this third party 1099 stuff. This is the second time this year.
the IRS has backtracked on another dumb idea. Earlier on, they were going to force anybody that’s over the age of 50 years old that wanted to place a catch-up contribution in their IRA 401k. If you made over $140,000 a year, you were gonna have to put it into a Roth IRA. And I was pulling my hair out. I was like, do you have any idea?
how much paperwork this is going to involve, how many accounts I’m going to have to open up, what accountants are going to have to do to track all this and deal with this, not to mention all of the payment services. It’s an absolute bloody disaster. And they backtracked on that too. You know, the IRS, and I know this is a bit of an obscure sub-reference, but I thought about it. They just throw ideas out there. Reminds me of there was that scene.
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And when Harry met Sally, where they’re playing Pictionary, and you know, Meg Ryan is drawing a picture up there, and Bruno Kirby is trying to guess it, and he starts yelling stuff out, and he yells out, baby fish mouth! And Billy Crystal looks at him, he’s like, baby fish mouth, what are you talking about? Well, that’s basically what I look at when I see stupid ideas coming down the pike from the IRS. There’s the IRS shouting baby fish mouth again. It doesn’t make any sense.
My experience, again, I gotta deal with this all the time. Every quarter, this is the regular occurrence. It’s an ongoing joke and they don’t fix the problem. Every quarter I pay our quarterly taxes. On time, on time, in full quarterly taxes, FICA, you name it, pay it. The IRS turns around and sends me the money back. Why? I don’t know.
I don’t know. I don’t know, my accountants don’t know, the IRS doesn’t know, it just, it happens. And then they proceed to send me a letter saying that I didn’t pay my taxes.
Yeah, I did. Yeah, I did. You sent me the check back. And then they send me a bill with penalties that I’m supposed to pay. And then I got to write letters explaining, hey, we sent the money in on time. You see? And I’m not paying these penalties. And it’s rinse and repeat. It’s the same bloody thing again and again and again. Like you think that the IRS is going to be able to handle all of these 1099s? It’s a disaster.
that it really is dealing with these guys on a regular basis and just, you know, the fact that, you know, in essence, if you send in a paper return, there’s no way that they’re ever looking at that thing. There’s no way that they could even catch up, even with their, you know, 80 billion dollars and additional funds that are coming in. But, you know, anyway, taxes, you know, I…
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I got to deal with this all the time. It’s kind of a side note, funny story when it comes to taxes. I don’t share, you know, all the logistics stuff that I handle. I don’t share with my brother Michael what he pays, what we pay in taxes. I just don’t do it. Because I just leave it. He’s on a need to know basis when it comes to taxes, and he doesn’t need to know because if he, you know, really did know, I mean, he.
you start yelling and screaming, it would be just completely unproductive and it’d be coming up with new found ways of thinking of writing things off. Well, I’m thinking about our clients when I’m having dinner, why can’t I write my groceries off? Because you can’t, Mike. But anyway, I get it, I get it. We pay them and we send them in all the time and we watch the government waste our money. Don’t you think?
People, I mean, simplify the tax code. Does it have to really be 80,000, 90,000 pages long that nobody understands? And I’ve explained this before. Why? People ask me that question. Why, why is it so complicated? Well, again, the tax code is filled with loopholes. It’s a source of power for people in Washington, DC. They’re able to grant.
favors and loopholes to people who donate to them. It’s where all of the power comes from in Washington, D.C., the tax code and the federal registry. Watchdog on wallstreet.com.
