Posted on 04/02/2022 11:26:17 AM PDT by george76
In the best of times, the Internal Revenue Service is tough to deal with, and tax season is never fun. But the past few years have seen the IRS lurch from one crisis to another. And things are about to get much worse for millions of taxpayers.
In 2021 Congress expanded the reporting requirements of the obscure Form 1099-K. This information-reporting form tracks business transactions done with a credit or debit card or such peer-to-peer services as Venmo and Paypal.
Prior to the change, taxpayers received a 1099-K only if they processed more than 200 business transactions, amounting to more than $20,000, in the course of a year. Congress removed the transaction threshold and lowered the payment threshold to $600.
As a result, millions of taxpayers who have never seen a Form 1099-K will be receiving them. While no one knows how many Americans will be getting these forms, tax lobbyists estimate the number at as high as 20 million.
This won’t happen until next tax season, but card processors and peer-to-peer networks are already collecting information on their customers for the IRS—an incredible breach of privacy. Congress rushed this provision into law as part of the American Rescue Plan Act of 2021, and it was never vetted in tax and accounting communities.
The biggest issue is that millions of Americans won’t see this coming. They’ve never received a 1099-K and won’t know what to do with it. While the lower reporting thresholds were meant to bring full-time Uber drivers and serial Airbnb landlords into compliance, the net was cast too wide. ... . Imagine using your Paypal account to facilitate paying for a vacation, only to get a tax form in the mail.
(Excerpt) Read more at wsj.com ...
“Congress removed the transaction threshold and lowered the payment threshold to $600.”
I thought this ridiculous $600 reporting limit was abandoned due to public outcry.
I still remember the gleeful reporting after Ducey approved the tax on internet transactions. “State coffers filling up with new cash.” The media absolutely has an orgasm when we get socked. They tax us when we make it and tax us when we spend it.
They think technology is a substitute for law abiding citizens.
Last year the proposal to have banks report aggregate deposits and withdrawals over $600 on 1099-INTs was rejected by the public and Congress.
“Imagine using your Paypal account to facilitate paying for a vacation, only to get a tax form in the mail.”
I don’t get this line - that’s not a business to business transaction. That’s a personal purchase.
Unless they’re saying you’re going to get one for venmo’ing someone to split a hotel stay and then you should be able to defend that as such (no other large transactions) though I’m sure it’ll sucker in a buncha people to pay extra taxes they shouldn’t need to.
So they back doored it in under Venmo and Zelle which is what all the millenials use to transfer cash instead of check or actual cash.
They tax us when we make it and tax us when we spend it.
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And then torture us with an unintelligibly complex tax code.
It doesn’t pay to be a productive citizen anymore.
I’m sure it’ll sucker in a buncha people to pay extra taxes they shouldn’t need to.
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Ahaa, you’re catching on now.
This is another thing about the Biden criminal occupation I forgot about, IRS harassment. So besides record fuel costs, wide open borders, inflation, Russia invasion, 9000 Americans held hostage in Afghanistan and forgotten about, $85 billion in weapons and tech left to the Taliban, trans freaks shoved down our throats every second, open pedo season on toddlers in Kindergarten, we also got the IRS breathing down out backs. All in a little over a year.
Yep, this is SO much better than excessive Tweeting. And still the Rat/RINOs bash and harass Trump more than Biden
Yes.. for your convenience.. /s
Bow down!... Obey!... Snitch!...
Get used to it or do something significant about it...
You can change that. Be productive, and be a citizen, but switch to being a productive Sovereign Citizen.
Sovereign Citizens do not pay direct taxes, neither to the IRS, nor to their town/city in Real Estate taxes.
Is this a tax on cash taken out of bank accounts? Or, is this a tax on credit card payments?
This information-reporting form tracks business transactions done with a credit or debit card or such peer-to-peer services as Venmo and Paypal.
For clarification, here’s what TurboTax says about form 1099-K:
“This form endeavors to ensure that all online retailers are reporting sales for tax purposes. It requires credit card companies, such as MasterCard and Visa, and third-party processors, such as PayPal and Amazon, to report the payment transactions they process on behalf of retailers.”
This is if you RECEIVE more than $600 in payments from PayPal, not PURCHASE more than $600 of merchandise, right?
The SWAMP appears to love the $600 figure. What you are remembering is the previous "Big Brother" attempt to monitor every bank account, world-wide, possessed by US Citizens, Green Card & legal residents.
The initial proposal was a required reporting to the IRS/US Treasury of ALL TRANSACTIONS, within the calendar year, once the dollar value of account transactions exceeded that magic $600. The Biden Administration and Congressional Democrats were all in favor until they felt the SHTF. At first they tried raising the limit but then withdrew it up as too soon for the SHEEPLE! Do they still want it? ... What do you think!
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