Posted on 01/06/2022 6:04:06 AM PST by Red Badger
The law was included in the Democrats' $1.9 trillion American Rescue Plan Act, which was passed with only Democratic votes through budget reconciliation to avoid the Senate filibuster
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*resident Joe Biden and Democrats in Congress passed a new rule that requires payment companies and cash applications such as Venmo and PayPal to report $600 or more of payments to the Internal Revenue Services.
The law was included in the Democrats' $1.9 trillion American Rescue Plan Act, which was passed with only Democratic votes through budget reconciliation to avoid the Senate filibuster. The new rule took effect at the beginning of this month.
The requirement covers payments received for good and services. The rule would apply to payment services like PayPal, Venmo, Zelle, Cash App and others.
Payment companies were required to only send users 1099-K forms "if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year," according to Fox Business News.
The Democrats had considered a similar requirement for financial institutions to report more than $600 of activity in bank accounts to the IRS as a way for pay for their multi-trillion Build Back Better Act. The policy was ultimately abandoned by Democratic leaders.
It’ll never go back.
First step is to stop using these apps and go back to doing business the old fashioned way.
“Zelle”
I was wondering why there were commercials on ALL THE TIME for this ‘service’ which I’ve never heard of before, and would never use, anyway.
Makes perfect sense, now!
And, the ONLY reason they stopped short of having banks tattle on us, is that our Congress Critters aren’t very creative when it comes to laundering their kickback money. Except Brandon. He’s got it down. *SPIT*
If you have the chance, switch to a local Credit Union. They haven’t been corrupted. Entirely. Yet. :(
“First step is to stop using these apps and go back to doing business the old fashioned way.”
Pay cash, gold, or silver.
So if we sell a used sofa for $650 and are paid via Venmo or other cash app, is that money taxable?
uh......this is old news. The IRS reporting has been in effect for about 5 years or so.
“First step is to stop using these apps and go back to doing business the old fashioned way.”
Good luck, these days.
This is a ‘First Step’.
It is THEIR first step to making such payments thru these services MANDATORY...........
One more step on the way to total control of financial transactions, with the end goal being government taking whatever it wants from your accounts.
Before it was a rule, now it is a law....................
DING! DING! DING! WE HAVE A WINNAH!...............................
That is why I use a Credit Union.............................
They had to pass it for us to know what’s in it! Sort of like hiding medicine in applesauce for babies; they treat us like children.
I wouldn’t worry about it too much. I wouldn’t stop paying taxes but I’m not sure the IRS is really even operating at this point.
There’s is going to be a lot less ebay sellers. I know a guy that buys boxes of junk at public sales and resells what he can on ebay. The guy is dirt poor but trying, he’s not going to like this.
I use zelle to send birthday money to family members. ☹️
The key word here is "basis." What did you pay for it?
If you paid more than $650, you can claim a loss and deduct it from your income. If you originally paid less, you'd have to declare a profit on the difference between your sale price and your purchase price.
What's weird about this is that it will convert all sorts of incidental property into property held for exchange. I can understand wanting to tax vendors who are making this a large business, but the threshold is way too low to justify the income that the IRS will pick up, or the bookkeeping that will be required. Save those receipts!
Use a money order (not a check), and stamp. Slow but ...................
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