Bad Paypal 1099

[DigDeeporDie]

Edit: old attachment

 

[jlauffer]

Just an update that I e-filed my taxes on 2/26. Got MA refund in 6 days and Fed in 12 days. Did the Schedule C again, as I did in 2017 and 2020. And again, I showed a slight "profit" due to not having records for some of the older knives I sold. Moving forward I will probably try to establish a "fair market value" for knives I don't have records for and use that as cost.

 

[madcap_magician]

The advice we've seen about just not reporting sales is starting to smell in light of the $40 billion that's about to go to the IRS to step up enforcement activities. Conspicuously absent? The amendment introduced by Mike Crapo (R-ID) to limit enforcement to businesses and individuals with more than $400,000 in income, despite the stated goal of the funds being to increase tax enforcement against corporations and high-income individuals only.

 

[Blues]

The advice we've seen about just not reporting sales is starting to smell in light of the $40 billion that's about to go to the IRS to step up enforcement activities. Conspicuously absent? The amendment introduced by Mike Crapo (R-ID) to limit enforcement to businesses and individuals with more than $400,000 in income, despite the stated goal of the funds being to increase tax enforcement against corporations and high-income individuals only.

Don't worry. Me and Boru13 spent the weekend getting congress to put in a bladeforums exception. Should be introduced any minute now.

Any. Minute. Now.

 

[madcap_magician]

Don't worry. Me and Boru13 spent the weekend getting congress to put in a bladeforums exception. Should be introduced any minute now.

Any. Minute. Now.

It should sail through on the grounds that knives are critical to our health and safety!

 

[Blues]

It should sail through on the grounds that knives are critical to our health and safety!

Duh!

 

[Gastonknife]

The advice we've seen about just not reporting sales is starting to smell in light of the $40 billion that's about to go to the IRS to step up enforcement activities. Conspicuously absent? The amendment introduced by Mike Crapo (R-ID) to limit enforcement to businesses and individuals with more than $400,000 in income, despite the stated goal of the funds being to increase tax enforcement against corporations and high-income individuals only.

Yeah right. Anyone with common sense knows what the current clowns in charge are doing here. If inflation hasn't already taken a big enough bite out of all of our pockets. Now we will have the IRS adding massive amounts of staffing to harass us.

 

[Blues]

Yeah right. Anyone with common sense knows what the current clowns in charge are doing here. If inflation hasn't already taken a big enough bite out of all of our pockets. Now we will have the IRS adding massive amounts of staffing to harass us.

Excuse me? They're from the government...they're here to help.

 

[skyhorse]

Excuse me? They're from the government...they're here to help.

They're always willing to help.

 

[ferider]

Here is a funny one (or so I thought):

To all you F&F sellers: don’t be surprised if a potential buyer withdraws his bid once you tell him that he’s on your ignore list.

 

[madcap_magician]

Here's some relevant news:

Senators propose changing reporting threshold to $10,000 from $600.

 

[jlauffer]

Here's some relevant news:

Senators propose changing reporting threshold to $10,000 from $600.

Nice, but I bet even if it happens, MA will stick with $600...gotta live up to that Taxachusetts nickname

 

[Triton]

Here's some relevant news:

Senators propose changing reporting threshold to $10,000 from $600.

Sounds great but it won't get done this year and although the house would probably pass it I will be surprised if the Senate does.

Also I agree that Massachusetts and most of the northeastern and West Coast states will be more than happy to keep it in place. There is a correlation that people in those places seem unable to draw.

 

[Toomanyquestions]

Forbes reports that the amendment was not voted on before the Senate passed the bill. Folks need to make their voice heard loud and clear on this issue.

 

[Vaporstang]

Fox Business is reporting "IRS delays new tax-reporting rule on Venmo, PayPal payments over $600".

"Controversial reporting rule on payments over $600 will go into effect in 2024"

"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."

 

[L.A. Saiga]

Fox Business is reporting "IRS delays new tax-reporting rule on Venmo, PayPal payments over $600".

"Controversial reporting rule on payments over $600 will go into effect in 2024"

"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."

We get one more year apparently

I'll take it!

 

[PeteyTwoPointOne]

Fox Business is reporting "IRS delays new tax-reporting rule on Venmo, PayPal payments over $600".

"Controversial reporting rule on payments over $600 will go into effect in 2024"

"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."

hmmm, interesting...I wonder does that mean the old 200 transactions / $20k G&S paypal threshold is <essentially> still the rule this calendar year, that is >>> 2022?

 

[Peter Hartwig]

Fox Business is reporting "IRS delays new tax-reporting rule on Venmo, PayPal payments over $600".

"Controversial reporting rule on payments over $600 will go into effect in 2024"

"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."

Not sure how much good that will do our members. You either prepared for it with receipts or worked around it. Few were actually going to owe.
But thanks for the info

 

[AFAustin]

hmmm, interesting...I wonder does that mean the old 200 transactions / $20k G&S paypal threshold is <essentially> still the rule this calendar year, that is >>> 2022?

That's my understanding: "The I.R.S. said that the old tax reporting rules that had been in place before the new law remain in effect until the change takes effect next year." NYT story

 

[luethge]

IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K | Internal Revenue Service

IR-2022-226, December 23, 2022 — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.

www.irs.gov