Get Your Taxes Won

[xparte]

[lorne]

What were you considering to do on the 1040 as a rebuttal?

[ag maniac]

What were you considering to do on the 1040 as a rebuttal?

Let me not put words in XPARTE's mouth......but the signed under penalty perjury information return with the properly filled out "Line 21" [yeah, I know it's a bit different this year, just using the term as a point of reference] acts as a affidavit to the truth.....we are tasked with ACCURATE SELF REPORTING, aren't we?

[Sabo]

What were you considering to do on the 1040 as a rebuttal?

Presumably nothing? The allegation is on a 1099, it seems that's the document that needs to be rebutted. Given the redemption, it's not "income" in their limited scope, so it doesn't belong on the 1040 as far as I can tell.

But just to ask outright - Given your question, are you saying that if/when you receive 1099s, you personally add the presumpted amount to your 1040?

[lorne]

Next step is to decide which method or tool you'll use to file your lawful money tax return.

1) pay someone to do it
2) pay for software
3) free file software
4) free fillable forms
5) paper & pencil

I think you'll be hard pressed to find someone knowledgeable enough about Lawful Money to do #1. Number 2 is fine but check here first, you may be eligible for #3 free file software. Fourth option is free fillable forms from the IRS site that will do the basic math. As for number 5, I can remember Dad clearing the table after dinner and sharpening his pencil and getting the calculator. I can tell you it was not something he enjoyed but he took it seriously.

[Sabo]

Next step is to decide which method or tool you'll use to file your lawful money tax return.

I very much appreciate you taking the time to respond, but I'm admittedly not sure what this has to do with my actual question.

I'm not unfamiliar with filing, and the rest of my forms are already in order. It's very specifically this 1099 that's keeping me from mailing it all off. I've been trying to get a sense of what you, lorne, do with your 1099s, especially considering you brought f1040 into the discussion.

And if you're not willing to share or it is not applicable to you, that's a valid response, as well. You had started to talk about 1099s above, and I've been hoping you would expound on it.

[ag maniac]

Hey Sabo.....as far as the 1099.....how were you recompensed during the year by the "employer" in question? Did you receive paper checks which you then redeemed in LM? Did you make copies of those to be used as evidence?

The evidence of your demand per 12 usc 411 is your rebuttal to the 1099

[marcel]

I understand all lawful money returns are to be sent to Gavilan Blvd this year.

[lorne]

HA. Where would that be ... Mnuchkin City ?

[Sabo]

Hey Sabo.....as far as the 1099.....how were you recompensed during the year by the "employer" in question? Did you receive paper checks which you then redeemed in LM? Did you make copies of those to be used as evidence?

The evidence of your demand per 12 usc 411 is your rebuttal to the 1099

Thank you for asking salient questions and actually furthering the discussion.

Yes, they were paper checks which were redeemed LM, which I have copies of. But I still need to acknowledge these somehow, and that's the part I'm hung up on. As I've said earlier, I don't think 1040 is the correct form for this, as it is not "income" within their limited structure (especially since their half-baked automated systems would want to peg me with FICA), but others are stating that they have never sent a corrected 1099.

[lorne]

There can be no doubt the Form 1040 is proper to report incorrect presumptions of federal income that was actually Lawful Money income. If for no other reason than ... it has worked so often for so many people, obtaining refunds, myself included. As example let's take this wage earner with the following income for TY2018:

1) Form W-2 showing Box 1 Wages, tips, other compensation of $52,000 who received 26 paychecks of exactly $1578.01 each all redeemed in lawful money like this.
2) Received a check and a Form 1099-S for $7,000 after selling property; also redeemed in LM.
3) Received a cash gift from Dad of $1,000.
4) Sold iPhone for $300 worth of bitcoin.

How would you prepare the Form 1040?

One week left until April 15th filing deadline.

[Sabo]

If for no other reason than ... it has worked so often for so many people, obtaining refunds, myself included. As example let's take this wage earner with the following income for TY2018:

Not sure if this changes anything, but I'm not looking for a refund. No money is stolen from me in the first place for any of my private activity. I just need to account for all third-party reports.

3) Received a cash gift from Dad of $1,000.
4) Sold iPhone for $300 worth of bitcoin.

I would contend that neither of these belong on the 1040. Sure, they "want" you to, but they "want" you to do a lot of highly-invasive things that have no legal basis. Having said that, in the case of BTC, I would include it if I were to meet the 1099-K threshold ($20K in transactions), as third-parties will be reporting that.

In any case:

But you'd be on the hook for social security and medicare ("FICA") tax due on your "self-employment" earnings. The self employed pay FICA as "Self Employment Tax" (SET). SET is calculated on schedule (form) SE and is filed as part of an income return.

But what if you're redeeming lawful money and don't agree that $7k was "self-employment" or "Nonemployee compensation"? Filing a return is your chance to rebut that allegation.

This is the part I've been wanting to get more information on. Because I'm redeeming LM, and thus is not self-employment, I don't see how 1040 is the right form. Rebutting the 1099 directly seems more correct, but other than the anecdotal evidence that 1040 is the way to do it, haven't heard any opinions on why correcting the 1099 wouldn't be.

To add to that, you've mentioned including a "supporting statement" for why a 1099 is not part of a 1040 calculation, but haven't seen any examples here or elsewhere online that define what such a "statement" would look like - are you referring to David's Supporting Schedule? It wasn't clear if FICA/SET/SS was calculated for the 1099(s) referenced.

The goal is simply to prevent automated flags, while also not confirming any of the presumptions that the IRS has about the nature of my money and the ancillary hooks those presumptions have (that is, FICA/SS/SET).

[lorne]

I agree there is no need to include 3) cash gift from Dad on the 1040. Suitors know the dual capacity of paper cash and choose to treat it as lawful money; US notes in the form of FRNs. And no need to include 4) as bitcoin transactions occur outside the Federal Reserve districts (outside banking altogether). Neither is federal income and there is no info reporting alleging it is federal income.

For the wage earner's Form 1040, I would prepare a statement like:

STATEMENT Supporting Details for Line 21 Other Income - Schedule 1
Form 1099-S $7000
Redeemed lawful money (property Exhibit A) -7000
Redeemed lawful money (paychecks Exhibit B) -41028
--------------
TOTAL Other income -41028

The Form 1099 income is cancelled out by the $7k check redeemed in LM leaving all the redeemed LM paychecks totaling $41028. This will result in AGI of $10972 and no taxable income. Full refund of $4354 (FITW) is due the wage earner.

[lorne]

Now let's consider the independent worker who made $100k last year, off the books as they say, with no reporting except for a single 1099-MISC alleging $7k in Box 7 "Nonemployee compensation." The rules say you're required to file as the $12,000 (Single) filing threshold does not apply to self employment income. You would not owe any income tax, because your income is below $12,000. But you'd be on the hook for social security and medicare ("FICA") tax due on your "self-employment" earnings. The self employed pay FICA as "Self Employment Tax" (SET). SET is calculated on schedule (form) SE and is filed as part of an income return.

However, this worker was paid in cash (lawful money) and checks which were all redeemed in lawful money.

Once again, worker will have more line items than will fit on the one Line 21 - Other income. We see it is normal practice to attach a statement:

STATEMENT Supporting Details for Line 21 Other Income - Schedule 1
Form 1099-MISC $7000
Redeemed lawful money (check Exhibit A) -7000
--------------
TOTAL Other income $0

This accounts for the 1099-MISC presumption of federal income. The filer has corrected, or rebutted, the presumption that the $7000 amount was federal income. The filer is therefore not an under reporter and will avoid getting caught up in the AUR machine. The resulting Form 1040 will show zero wages and zero taxable income.

[marcel]

Nice. Four days left. Lorne you need me to pretend to be confused so you can file this return?