We Only Wash Losses Here
I’ve been sitting on this one for a while. It was issued July 27, 2010. It refers to the flash crash of the stock market on May 6 which caused many stop-loss orders to be triggered some of which resulted in gain recognition. Whoever (I don’t think Redacted Text was his real name) wrote to the IRS more or less logically (as if that means anything) thought investors should be able to reestablish those positions with appropriate basis as if no gain were recognized.
And Another Purge
If you were supposed to send somebody a 1099, you were supposed to ask them for their social security number of EIN. Since you didn’t ask they didn’t give it to you. Therefore you should have subjected their payments to back up withholding. It’s a nightmare. You can get out of the back-up withholding by getting them to sign a form swearing they reported the income. Good luck.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.