January 1 could be interesting thanks to congress.

[BobC]

Originally Posted by sreader3

Why should one not worry about the situation you are describing where deducting basis from the revenue shown on the 1099 triggers an audit and forces one to pay an attorney and testify to prove one's innocence? That sound like a nightmare. Except for the attorney.

C'mon, are you really being serious?!?!?!

Reporting what you have received as gross income/revenue, as shown on a 1099 you receive, and then deducting the expenses and costs you had in acquiring the items you sold, and/or other costs involved in marketing and selling them, are NOT going to trigger an audit by the IRS. Do you really not believe the IRS knows the 1099s only report the gross amount someone receives, and that in virtually almost every instance that does NOT reflect the actual taxable net income or taxable net gain someone ends up with and that they actually owe tax on? You do not pay and owe taxes on gross income/revenue, you due owe it on net taxable income/revenue.

The IRS is not stupid and looking to create even more senseless work for themselves. They have Congress and the rest of the government to do that for them.