Posted on 11/21/2023 5:23:45 PM PST by Libloather
The IRS announced on Tuesday that it is delaying a controversial tax reporting requirement targeting Americans who made more than $600 online through third-party payment apps like Venmo or PayPal.
The rule change – approved by Democrats in March 2021 with the passage of the American Rescue Plan – would have required payments platforms, including Venmo, PayPal, Etsy and Airbnb, to send Form 1099-K to the IRS and users if their transactions totaled more than $600 over the course of the year.
Instead, the IRS will treat 2023 as "an additional transition year," meaning that payment apps will not be required to send users Form 1099-K unless their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year. Beginning in 2024, that basic reporting threshold will be increased from $600 to $5,000.
It is the second straight time the IRS has delayed the reporting threshold.
"Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion," IRS Commissioner Danny Werfel said in a statement. "It’s clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area."
The rule only applies to payments received for goods and services transactions, meaning that using Venmo or PayPal to send a loved one a gift, pay your roommate rent or reimburse a friend for dinner will be excluded. Also excluded is anyone who receives money from selling a personal item at a loss; for example, if you purchased a couch for $300 and sold it for $250, the amount is not taxable.
"This doesn't include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips," PayPal previously said.
(Excerpt) Read more at foxbusiness.com ...
Election move that will be reversed THE DAY AFTER Biden’s re-election in 2024.
Thou speakest with forked tongue.
eBay stock is up a buck today
It's clear that the extra effort required to reign in all that new 'found money' would tax the IRS itself. They're really scraping the bottom of the barrel trying to pull this off, IMO. Especially when they let people like Joe Biden take untold huge amounts of bribe money in tax free. Wanna take a bribe? Just put 'loan repayment' on the check.
There’s already a bill in the works. I’m betting that Mike gets the house to pass it...which should fit nicely to cutting the IRS budget as part of the Israel support bill.
That’s what I figure.
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