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IRS Delays $600 Tax Reporting Rule for Venmo, Etsy Sellers and Other Digital Wallets
December 23, 2022 at
01:44 PM
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I can't speak to that. I've been filing a schedule C and 1099's of various types since I was 16 and started my first side hustle. I am meticulous with my taxes, personally. Illinois has had the $600 rule for a couple of years now. Just because I disagree with it doesn't mean I'm not going to follow it. You'd have to be very foolish to mess with the IRS. I know people who have done it and they all regret it when they get audited finally.
I hate the IRS and I don't consider people who earn small amounts of side cash to be fraudsters; I think the government needs separate exemptions for this type of income that would exclude most people automatically without the need to document, but you also, as a practical matter, have to understand the enemy and their power over you and protect yourself.
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Lazy
You sound like a fool with all your replies (maybe a bot?). Most of the people opposing this aren't "fraudsters" like you keep repeating. Having to keep track of small transactions for selling used goods at a loss is asinine...and if you don't keep track or forget or lose a receipt you get a 1099 at the end of the year and pay income tax on the thing you bought (and paid sales tax) with money that was already taxed when you earned it (paid income tax) and now would pay another round of income tax even if the sale was for a loss. Get real my man.
Government has no right to be into my personal and private non business sales. Won't convince me otherwise.
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Taxpayers still report this income, some receive MISC forms etc., but more important the safety net requires proper taxation. People selling crafts and driving cars as part of the gig economy increase their own chances of an audit without guidance like these mailings. Then they underpay their retirement, forcing the rest of the economy to make up for people who generally won't have an established retirement plan anyway.
These arguments about keeping the limit/transactions the same are without evidence of any actual policy. Then the people who complain about government intrusion forget people are dumb and don't save for retirement, and when they fall into the net we will pay their retirement for them. Meanwhile the government can't properly distribute tax burden because people want to bury their head in the sand, that there is no proper tax here, that there should be no tax enforcement, and that the government should leave them alone in their imaginary policy vacuum.
Taxpayers still report this income, some receive MISC forms etc., but more important the safety net requires proper taxation. People selling crafts and driving cars as part of the gig economy increase their own chances of an audit without guidance like these mailings. Then they underpay their retirement, forcing the rest of the economy to make up for people who generally won't have an established retirement plan anyway.
These arguments about keeping the limit/transactions the same are without evidence of any actual policy. Then the people who complain about government intrusion forget people are dumb and don't save for retirement, and when they fall into the net we will pay their retirement for them. Meanwhile the government can't properly distribute tax burden because people want to bury their head in the sand, that there is no proper tax here, that there should be no tax enforcement, and that the government should leave them alone in their imaginary policy vacuum.
https://www.irs.gov/newsroom/irs-...rms-1099-k
WASHINGTON — 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.
As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.
As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) that would have generated Form 1099-Ks for taxpayers.
I'm sure if the threshold is raised to like $10000 they'll still ask for your SSN when you sold a single item for $10 in a year
Yep. I've only used FB marketplace a few times and all have been cash transactions. Then at the end, I tell FB I didn't sell the item. 🤷 ♂️
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Yeah, eat the rich….it's not like they pay 95% of all the US federal taxes or anything.