WTT ******. ALERT. **** Please read

[TAArrowood]

I just heard on tv that the IRS is/has been forcing PayPal and other online payment services to report any payments (goods and services) $600 and over. It appears that the IRS may expect the receiver of the payment to add the payment to their taxable income. This is the first I’ve heard and it appears to have been going on for a while. I hope the report is in error, but does not appear to be. Thanks.

 

[JonnyB]

It starts for this tax year (2022) but if you’re not making a profit, then it doesn’t matter. Good thing to be aware of for sure because the only receipts I have for most gear is my online user account on a merchant’s website, and that’s not always the case. So if you bought a pack setup for $700 and then sold it for $550, that’s not reportable since you took a loss.


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[jedm]

So if it applies to $600 and over, then can you do multiple transactions under $600 and not worry about anything?

 

[Sam Colt]

So if it applies to $600 and over, then can you do multiple transactions under $600 and not worry about anything?

No. The new rule says that beginning January 1, 2022 payment platforms will be required to issue 1099Ks to any taxpayer who receives $600 or more *in total* for transactions tagged as "Goods and Services".

 

[cmahoney]

Federal Government Plans On Hiring 80,000 Additional IRS Agents

The Federal Government now proposing to double the size of the IRS, by hiring nearly 87,000 new workers over the next decade, as part of a sweeping plan to chase down tax cheats. The hiring spree, part of a bid to increase IRS funding by $80 billion.

www.linkedin.com

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[2five7]

They have no idea what's exactly in their $3.5 trillion dollar spending bill, but they want to know exactly what you're doing with that $600

 

[chetraguse]

 

[cmahoney]

They have no idea what's exactly in their $3.5 trillion dollar spending bill, but they want to know exactly what you're doing with that $600

Green jobs Bro, C’mon man!


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[JJJ]

Digital currency around the corner. Every 1000th of a cent will be accounted for and collected. Modern day slavery

 

[shedfinder7]

Back to the days of using postal money orders I guess .

 

[Whip]

I'll be asking my tax guy about this when we meet. I'm not concerned that I'll owe any taxes because I don't make a profit on stuff I sell. But I may very well receive more than $600 and just need to make sure I know what I need for documentation.

 

[rodney747]

Back to the days of using postal money orders I guess .

I can live with that. Worked well for many years!!

 

[mxgsfmdpx]

This isn’t anything new. If you’re making profit selling goods or services and getting paid online and haven’t been reporting it on your taxes as income that’s a huge no no.

 

[Yukon Cornelius]

This isn’t anything new. If you’re making profit selling goods or services and getting paid online and haven’t been reporting it on your taxes as income that’s a huge no no.

So huge wars will be fought over it.

 

[Kbhillhunter]

No. The new rule says that beginning January 1, 2022 payment platforms will be required to issue 1099Ks to any taxpayer who receives $600 or more *in total* for transactions tagged as "Goods and Services".

Does that mean Friends & Family payments won't be tracked / reported towards the $600?

 

[TAArrowood]

Good question. Part of the issue here too is that many folks pay or ask for payment with G & S to get the protections that is offered via PayPal. Problem is that many of the items bought and sold are banned on PayPal so reporting an issue to leverage the protection would be a real problem if the item in question were banned. I would like to know myself if F&F would be exempt. According to the tv report it was, but I’d like more clarity. Thanks.

 

[long hunter]

If your close enough for a sale, hand too hand cash, Do not be surprised the next time you buy a gun that there is a place on the 4473 as too cost, either new or used, just saying.

 

[Super tag]

This is getting out of hand

 

[mtblackdog]

Lets Go Brandon

 

[Erict]

From HERE:

"For Venmo, Cash App and other users, this may sound like a new tax—but it’s merely a tax reporting change to the existing tax law.

Form 1099-K is a tax form sent to users that may include both taxable and nontaxable income sources. A taxable source of income is included in your income, such as wages, rents, tips, and retirement income. Whereas a nontaxable source is excluded from your income and you will not need to report on your tax return.

Some examples of nontaxable income are:

• Money received from a friend as a reimbursement
• Money received from a roommate to pay their share of the rent
• Money received from a loved one as a gift

Also, if you receive money from selling a personal item at a loss, you are not required to report the amount on your tax return. For example, if you purchased a dress for $100 and sold it for $50, the amount is not taxable.

But while the new law does not create a new tax, you must keep good records of any taxable income received."

I think this kind of thing was coming regardless of who is in control in Washington - too much money involved with underpayment of taxes (especially internet sales), money laundering, etc. Regardless, we can try to slow our demise by making sure everyone on "our side" is REGISTERED TO VOTE and does so in every election they can participate in.