Posted on 12/23/2022 11:14:45 AM PST by SeekAndFind
The Internal Revenue Service on Friday said that it is delaying by one year a new tax reporting requirement targeting Americans who made more than $600 online through third-party payment apps like Venmo or PayPal.
"The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan," said Doug O'Donnell, the acting IRS commissioner. "To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes."
This is a developing story. Please check back for updates.
(Excerpt) Read more at msn.com ...
MORE Here:
https://www.zerohedge.com/political/irs-delays-600-gig-tax-rule
The Internal Revenue Service on Friday announced they are delaying new tax-reporting requirements for millions of Americans who made more than $600 of income from e-commerce platforms such as Ebay, Etsy and AirBnB.
The one-year reprieve means that said e-commerce platforms will not give the tax agency information on users whose income exceeds the $600 level, nor will they be required to provide sellers with a blizzard of 1099-k tax forms in early 2023. As the Wall Street Journal notes, this also means that opponents of the $600 rule can push for a change in the law next year.
“The additional time will help reduce confusion during the coming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements,” according to Acting IRS Commissioner Doug O’Donnell.
In the waning days of this year’s congressional session, lawmakers in both parties discussed raising the $600 threshold or delaying implementation. After those efforts failed this week, the IRS stepped in with the delay. Treasury and IRS officials said Friday that they hope to work with industry groups over the next year to make sure the forms go to the right taxpayers. -WSJ
The rule was set to affect millions of gig workers who are independent contractors and haven't been reporting income on their tax returns. What's more, the law didn't differentiate between people running a business, and those who are "casual" sellers who are cleaning out closets and attics.
What's more, the gross revenue on the form isn't necessarily all income depending on the cost basis of the items being sold, or whether the items were inherited and are now worth less than their value on the date of the death.
The delay doesn't change what income is taxable, however, just what information the IRS will receive. Gig workers are still required to track and report all income, they just won't have e-commerce sales platforms ratting them out.
Just don’t use Venmo or Paypal. They are libtards anyway.
Anyone that supports American freedom should want to shutter the IRS and scrap the tax code. Replace the tax code with a consumption tax collected by the states and wired directly to the US Treasury. The IRS has been weaponized and used against conservatives. We cannot allow these deep state bastards to exist. Send every single IRS employee to the unemployment line and remove one more weaponized part of the federal government.
Regarding eBay, for example, eBay issues the 1099, not Paypal, so the transaction won't go under the radar.
Get Rid of It and the IRS!
WHO has to keep track & send in the 1099 info???
Vendmo? The sender? The recipient???
That gives the Republicans who (barely) run the House a chance to stop this crap.
But will they...one guess.
p
Whoah, I just checked that Both eBay and PayPal can issue them, so it will appear that the seller sold twice as much. Probably not too hard to prove if audited, but most sane people really like to avoid that situation.
There should be 100% non- compliance with this.
We’re NOT our brother’s keeper.
So the IRS can enforce whatever the F laws they want?
The retardly named American Rescue Plan is either law, or it’s not.
The payment platforms!
Would have had to send all the forms and report the payments as income to you!
A real nightmare.
Send your kid $600…they had to report it as income and file taxes
That's the issue. If you're issued a 1099, you don't get that choice. Somebody complies for you.
Actual inspection of details is being delayed while the IRS staffs up and actually gets the 87,000 new employees authorized by the previous spendinggasm the dems had.
The tax equivalent of E-Cars; sounds wonderful in the back room full of 20-somethings who write legislation, but doesn't work in the real world. Sort of like neocons who promote war spending, and then need to find an actual war to use the weaponry. They just don't take into account actual suffering by actual victims.
If one-tenth is enough for the Lord, one-tenth should be enough for the government.
ya thats the payment method of the ferals!! dont wanna interupt those low scale crack deals!! just the competition at the higher levels! just like our military... replace the command but keep the grunts...
Won’t make much difference. They’re going to pop off on the
electronic dollar, and they’ll know exactly who gets what.
Two things will happen.
Most commerce via cash will come to a screeching halt.
The cashless card will gather dust.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.