Posted on 11/21/2023 10:42:09 AM PST by Diana in Wisconsin
For the second year in a row, the IRS has decided to postpone implementation of a rule change that would affect tax filers who receive business income for their goods and services via payment apps and online marketplaces like Venmo, CashApp, Etsy and Airbnb, among others.
The change might have resulted in 44 million more 1099-K forms being sent in January to such filers, including small business owners, freelancers, those with side hustles and gig workers.
In explaining why it is postponing implementation again, the IRS cited concern over potential taxpayer confusion and the need to make it easier for all parties to comply with the change.
“We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” said IRS Commissioner Danny Werfel. “We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we’ll work closely with third-party groups, tax professionals and others to find the smoothest path to ensure compliance with the law.” What you need to know for your 2023 taxes
For this tax year, the reporting rule that has been in effect for years still applies.
Third-party payment platforms – also known as third-party settlement organizations – must report your gross business income to you and the IRS in January only if you conducted more than 200 business transactions on that platform and earned more than a total of $20,000 from them.
*SNIP*
The rule change, which was enacted under the American Rescue Plan of 2021, will eventually require that third-party platforms issue you a 1099-K if you made more than $600 in annual business income over one or more business transactions.
(Excerpt) Read more at channel3000.com ...
That $600 amount for issuance of a 1099 to independent contractors has not been inflation-indexed.
For around 40 years it has been that number.
Ready for the FAIRtax?
Please help us replace the Marxist inspired “progressive” income tax with the FAIRtax and abolish the IRS!
Go to https://www.fairtax.org and/or https://www.bigsolution.org to find out how to help us.
We will NEVER be a FRee people so long as we have an income tax and the IRS!
If a person creates income, they should report it. Fair is fair. Rules need to be updated to capture it all. The real debate thereafter should be at what level do we tax.
Fed bucks digital currency will fix it for them and ficks us also.
““We want to make this as easy as possible for taxpayers.”
LOL. If they really wanted this they would go to a simpler tax system that is easier for them and us.
Agreed, whatever amount is the threshold for paying taxes should be the threshold for reporting. If I don’t owe tax on the first $10,000 or $25,000 then no need to report. But they do need to address single and multiple source income to avoid people gaming system with $10,000 here and $10,000 there…
I changed my name to “Hunter Biden” and I don’t pay any taxes now.
“Al Sharpton” also works.
The politicians don’t want to piss people off in March/April of an election year.
Biden gives billions to Ukraine with zero oversight where a significant portion is embezzled and the DoD can’t account for tens of billions in funds allotted, and Medicare/Medicaid pays billions each year in fraudulent claims and the IRS wants to know when I sell a mower for $600? The way I see it, if they want to know when I sell a mower for $600, I want to take depreciation on it or count it as business loss because it was $3000 new.
How about this: Tax what individuals take out of the economy, not what they put into the economy?
IOW, tax CONSUMPTION! NOT PRODUCTION!
THAT, my FRiend is FAIRtaxation!
Why tax income?
How much money a person makes is no one’s business, particularly an anonymous government agent!
Under FAIRtax, Americans can work, earn, save and invest without the HEAVY HAND of government interfering.
Under FAIRtax, taxes are paid on consumption, and each consumer can choose how much and when to pay their tax at the point of sale.
EVERY TAXPAYER is treated the EXACTLY same at the check out counter — IOW, EVERY TAXPAYER PAYS THE SAME RATE!
NOW, THAT IS FAIR!
[NOT YELLING — JUST PASSIONATE!]
I guess they wont need those agents anymore.
Seriously, the return per agent would have to be significant to justify them going after the kid who rakes my leaves that is paid through Venmo. While I don’t pay him $600, I know he makes that much on my street.
I guess if there were going to sic the agents on the Pentagon—who cannot pass an annual audit—that might be a different thing.
Great point!
Carefully consider the FAIRtax.
There will be no IRS to harass you ever again!
No kidding…every cent will be tracked from soup to nuts. No tax will go uncollected, because the collection will be centralized and automated.
God help the poor bastard who has his info entered incorrectly. The government would ruin them.
I am a big supporter of the Fair Tax.
And you know what else has been around for over 50 years? Banks required to report any cash deposit exceeding $10,000, which was enacted in 1970. That should be around $80K today if they adjusted it for inflation.
Since when did the IRS ever care about making it easy on the tax payer? 🙄.
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