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.
BM
It’ll never go back.
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Never, because the GOP never does anything meaningful to roll back the excesses and dangers of big government.
Before it was a rule, now it is a law....................
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We used to be governed, now we are ruled over.
Valerie Jarrett during the transition of Obama:
“We will be ready to RULE on day one!”.....................
No wonder so many businesses are asking for cash these day.
Happy to comply - and many of these businesses will give a discount for cash.
This is not old news. Every transaction above 600.00 and the seller gets a 1099-k
Last year you were allowed to sell up to 20,000 or 200 transactions before you got a 1099.
Doesn't depreciation have a play here?
This happened during Obama’s reign. eBay was fighting it. They sent our emails about calling your congress critter. I know lots of folks who buy & sell.(Including myself) Call it whatever you want but it was put into effect years ago.
Yes, it cost them money to comply with the reporting.............
Sending money to a friend as a gift, paying rent etc is exempt.
The Republicans will never repeal it. If they ever get the chance.
Just like Obamacare. They said they would then didn’t..............
Any single sale above 600 dollars went into effect during Obama too. I knew a few people who got IRS notices. One lady sold a vintage coal miners lamp and she told me a few weeks later she got a notice from the IRS.
The problem with regulation...any regulation is that it costs money to enforce and to report. Look at the stock filings for any corporation and you’ll see a cost for regulatory compliance. That cost comes right off the bottom line and does nothing but enrich lawyers and accountants. One of the companies I worked for had regular onsite inspections by federal, state, county and city EPA’s. The prep for each visit was probably $20,000 as every corner of the company was spit polished. That’s because a “finding” can literally put you out of business as some of those inspectors have the power to force you to shut your doors until the “finding” is satisfactorily addressed. This was a super clean business with practically no dangerous substances. It’s the same with everything Congress does to companies. The things sound wonderful but are not cost advantageous. Usually, whatever is fixed isn’t worth the expense.
Not if you have a receipt from when you bought it and showing that you didn't make a gain on it. It's on you to prove it was used and not something you're flipping for a profit.
At one time of day most Americans would have been alarmed by such a statement.
Time to change my Venmo account label to Clinton Foundation II.
Careful not to exceed the gift limits or be subject to the gift tax.
I sell up on eBay. Always stayed below 20,000 in annual sales and less than 200 transactions.
Never got a 1099 in 20 years
The 600.00 transaction started this year Jan 1st.
Not sure how your friend got a 1099 for selling one item.
Yep. I’ve used a CU for more than 25 years. Where you are a member, not a customer. Personal, business, home improvement, auto loans. And they’re friendly!
When I worked as a contractor any payments I received over $600, I got a 1099. People are using these systems to get paid.
Why is this such a big deal? 1099 workers have lived like this for 20 years.
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