Posted on 11/26/2022 9:09:49 PM PST by SeekAndFind
The Internal Revenue Service is reminding tax filers to prepare to report transactions of at least $600 that are made through so-called “third-party” facilitators such as Venmo and PayPal.
The agency on Tuesday posted an explainer warning American business owners earning $600 or more per year on payments that are received through apps such as Zelle, Cash App, Venmo, and PayPal to file a tax form known as Form 1099-K.
The IRS is interested in transactions involving part-time work, side gigs, and selling goods, according to the agency.
The rule does not apply to noncommercial payments like reimbursing someone for food or rent or other one-off transactions such as selling an old piece of furniture, according to accountants.
Before this year, the threshold for filing a Form 1099-K report was at least 200 transactions totaling an aggregate of at least $20,000.
When Congress passed the American Rescue Plan Act of 2021, it included a provision that reduced the reporting threshold to a single transaction over $600.
The Biden administration hopes that by reducing the threshold, the measure will crack down on Americans evading taxes by not reporting the full extent of their gross income.
The proposal was offered as a way to help pay for a $3.5 trillion social spending bill that would invest in climate programs, child care and education.
Tommy Lucas, an Orlando, Fla.-based certified financial planner, told CNBC that filers must include any sum that is reported on Form 1099-K as part of their business income.
Failure to do so could trigger an audit since the IRS obtains a copy of Form 1099-K directly from the third-party payment facilitator.
(Excerpt) Read more at nypost.com ...
What a joke #letsgobrandon
“such as selling an old piece of furniture, according to accountants.”
This is just stupid.
So where is the line on the 1040 where I let the IRS know I was selling an old piece of furniture and that’s the reason I got a 1099-K??
Why would anyone sell a table for 700 if they can get 100 for each leg and 300 for the body of the table in 5 separate transations?
I can’t justify being involved in the money-laundering going on now.
The IRS would claim that you are engaging in “structuring” in that scenario.
Why would anyone sell a table for 700 if they can get 100 for each leg and 300 for the body of the table in 5 separate transations?
= = =
Oh, that will be ‘structuring’.
the reporting threshold to a single transaction over $600.
= = =
Other reports say is $600 accumulated per year.
Two viewpoints on this. First, if people are doing work and receiving payment, they need to declare that and pay taxes just like the rest of us. And I have a long history of 1098 income, so I am familiar with this. Second, it is a bit nosey to get into what personal items we buy and sell. None of their business.
The way I look at it, I’m not going to (and I didn’t) keep track of all that crap, and therefore am not going to report it. So that gives the IRS two options, if they are tracking it, I’m sure they’ll figure out how much I owe and send a bill for any balance of taxes due. And I will pay it then. Or if they are not tracking it, and it’s just an idle threat to get people to self report...well then, I guess I won’t be paying it.
Clearly more fake news. Dotard Joe promised on multiple occasions there would be no new taxes on anyone making less than $400,000/year.
Oh, that's telling 'em off! I bet that the IRS feels really crushed when people tell them that they are being "a bit nosey!"
Leads them to crawl into a corner, and sorrowfully review the moral principles of their activities!
Regards,
Eff CONgress.
So if I buy your Harley-Davidson for $600 through PayPal, will the IRS be able to track the payment and charge me with a tax?
Sounds like it. We are all greedy capitalists now.
Off to the Gulag with you!
Yes, it’s a joke. They tell us to do this or else, while they funnel $ billions into their pockets.
Wait.. this wasn’t previously required? I’ve always reported income regardless of the processor. Man I’m a sucker.
Only under a evil dictator like Joe Biden and a Dem Congress do we get a brand new burdensome and completely unfair pile of taxes...
Under his system - you have an old power tool you don’t need any longer - you sell online and get payment via Venmo or Paypal... and the total is over $600 (total) - it doesn’t matter that you paid over $1800 for the items a few years ago... it now becomes taxable income.
Sell your old car in a newspaper want ad - for cash or even a check - and no record and no taxes due on your part. But accept Venmo or Paypal - that amount is reported as taxable income.
He did the same with Crypto as well - I invested under $100 in crypto a year ago. My investment is down 50%. But - if I were to cash out right now - that is reported as income (despite having lost 50% - and the purchase was made with post-tax money).
How is this even legal or constitutional? Guess it takes someone getting harmed and having deep enough pockets to file a lawsuit?
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