Don't let the media spin it!
Just because someone is selling something on eBay, or doing transfers on PayPal , does not mean that the cash transaction is a taxable transaction.
But I think we all know, in case of an audit by the IRS, you are guilty until proven innocent. When all these people get audited ,it will be up to them to demonstrate that the transactions in question are not taxable, and that’s the reason they were not reported on their income tax returns.
Note, these are all woke companies. They want YOU to pay more taxes while they try to avoid them like the plague.
Democrats in action...
I’ve thrown red flags ever since Biden pushed this - consider the consequences:
You are NOT an online business - you simply use one of these services to buy and sell online - clean out your garage and have some useful stuff to unload? Well - if the grand total for the year of “sales” is $600 - you were supposed to report it (and the Biden policy made the processors do the reporting).... So:
That extra chainsaw you never use... you paid $600 for it (plus another $30 for the extra chain) and $40 for a case... you are in it $670... You sell it on FB Marketplace for $350... using PayPal...
You also have a bicycle... that you paid $800 for a few years ago... but ever since your injury - you just don’t ride any more - so it gets listed and sold for $300...
You have not made a profit by any measure - but because you had “income” through Paypal payment processing - it gets reported to the IRS as “income”... and technically - you pay income tax on it -
And many don’t know - crypto currency is treated very similarly - Say you initially bought $1000 worth. It went up for a while, then the bottom kind of fell out - so you waited for a bit of a positive move and sell... you got $700 of your original 1000 back... and the $700 is reported to the IRS as “taxable income”...
What the heck?
NOT capital gains tax.
That would require data on cost of item when obtained & sales price AND LENGTH OF TIME-—Over or under a year for short term or long term capital gains.
Capital Gains is entirely Another kettle of fish.
IF IRS wants the cash transacted to be reported to the IRS by PAYPAL, etc, then PAYPAL,etc NEEDS SOC SEC NUMBER, etc.
I have filled out 1099’s for over 58 years.
I couldn’t even guess how many.
When I did books for small businesses and a 1099 was called for, AND the recipient refused to give me Soc Sec number, etc., I would type up a 1099 with the information I DID HAVE and where the box was for SS NUMBER-—I would write REFUSED.
At least MY client who had paid the $$$$$ was legally filing the 1099, no penalty for him.
Does PAYPAL also transfer money-—just like Western Union? NO “SALES” involved???
Ebay also forced out PayPal as a choice for sellers to be paid.