The IRS is tracking payments over $600 on Paypal and Venmo in 2022

[bwframe]

I doubt the public cares if banks lobby the feds to make life difficult for their Zelle competitors…

This is the information age. It doesn't cost much to turn favor away from one business to another, as long as there is competition.

Outside examples; A lot of us would favor the companies that don't at least openly neglect our interests. I'll give my money to those who aren't supporting anti-gun or BLM, if there is a choice.

 

[BigRed]

Treasury Confirms: Biden Plans to Hire 87,000 New IRS Agents, Enough to Fill Nats Park Twice - Americans for Tax Reform

President Joe Biden wants to hire 86,852 new IRS agents, which would more than double the agency’s workforce. To put this into perspective: With 86,852 IRS agents, you could fill Nationals Park twice 86,852 IRS agents is more than the population of Biden’s hometown of Wilmington, Delaware which...

www.atr.org

Saw one of their want ads:

Are you a twit with no friends?
Do people hate you?
The IRS is the place for you!

 

[Cameramonkey]

In related news, Effective early to mid 2021, you can no longer sell on ebay without having your SSN tied to your seller account and your banking info. I went to sell something and was told "Not so fast. Fill out this form so we can report your earnings (if necessary) to the IRS at the end of the year." (notice we didnt say please. You're done selling until we have that info)

Before they didnt do anything until you hit a certain point. Like $20,000/year in sales as I recall from one article. If you were just selling some stuff to make some extra cash, it was never reported. It wasnt until it was obvious you were serious (aka a business) that they would report. And the funds would go into your paypal account where you could spend it or transfer the money into a linked checking account to cash it out.

They are also changing payments. No longer will they just put the sales revenue in your paypal account and let you have flexibility of either using your paypal debit to spend it, or transferring into your checking when you want it there. Nope. Now it all has to go into your checking. So now the paypal debit card appears to just be for those that want a reloadable visa. I can still go into a store and add cash to my paypal account to be able to buy stuff using my paypal debit, but any funds I get from Ebay now have to filter through my bank. I'm sure that is no coincidence to this thread.

 

[Hatin Since 87]

In related news, Effective early to mid 2021, you can no longer sell on ebay without having your SSN tied to your seller account and your banking info. I went to sell something and was told "Not so fast. Fill out this form so we can report your earnings (if necessary) to the IRS at the end of the year." (notice we didnt say please. You're done selling until we have that info)

Before they didnt do anything until you hit a certain point. Like $20,000/year in sales as I recall from one article. If you were just selling some stuff to make some extra cash, it was never reported. It wasnt until it was obvious you were serious (aka a business) that they would report. And the funds would go into your paypal account where you could spend it or transfer the money into a linked checking account to cash it out.

They are also changing payments. No longer will they just put the sales revenue in your paypal account and let you have flexibility of either using your paypal debit to spend it, or transferring into your checking when you want it there. Nope. Now it all has to go into your checking. So now the paypal debit card appears to just be for those that want a reloadable visa. I can still go into a store and add cash to my paypal account to be able to buy stuff using my paypal debit, but any funds I get from Ebay now have to filter through my bank. I'm sure that is no coincidence to this thread.

It’s my property. I own it and I’ll sell it wherever and however I want. I paid for it, it’s mine. Why the **** does that need to involve anyone besides me and who I make a deal with?

 

[Cameramonkey]

It’s my property. I own it and I’ll sell it wherever and however I want. I paid for it, it’s mine. Why the **** does that need to involve anyone besides me and who I make a deal with?

The Crown needs their cut.

 

[Hatin Since 87]

The Crown needs their cut.

We overthrew some crowns once, all because of some damn tea

 

[bwframe]

Keep in mind, even when we win back congress, these new laws and procedures will not go away. These govt agencies are self feeding, let alone their being weaponized for political gain. They know where their paychecks come from, OUR TAX DOLLARS.

This needs to be a HUGE lesson for the next elections. We need tax reform, the least of which leads to the beginning of the end of the IRS.

 

[Ingomike]

Keep in mind, even when we win back congress, these new laws and procedures will not go away. These govt agencies are self feeding, let alone their being weaponized for political gain. They know where their paychecks come from, OUR TAX DOLLARS.

This needs to be a HUGE lesson for the next elections. We need tax reform, the least of which leads to the beginning of the end of the IRS.

So right! And it sucks. For all their grandstanding I have never seen republicans repeal anything the dems put in place…

 

[ditcherman]

Keep in mind, even when we win back congress, these new laws and procedures will not go away. These govt agencies are self feeding, let alone their being weaponized for political gain. They know where their paychecks come from, OUR TAX DOLLARS.

This needs to be a HUGE lesson for the next elections. We need tax reform, the least of which leads to the beginning of the end of the IRS.

Also realize that just because there’s more R’s than D’s in congress doesn’t mean we’ve won it back.
Not by a long shot.

 

[BehindBlueI's]

Your dads deal has got to be the exception to the rule; I’m pretty small potatoes 3 employees and 2 seasonal businesses, if I’m a day late depositing withholding I get a notice, if the out-of-season business didn’t have any payroll and I don’t file anything I get a letter telling me how much I must owe them since I am obviously not keeping track. They sure are keeping track of little ol’ me. Sometimes it make me want to throw in the towel.

They tracked him. They know. They came to my door and knocked looking for him when this was still current, as he got mail at my address.

But enforcement: Nada. He's below their threshold for prosecution, doesn't own anything they can take, they can't garnish his disability (he's a double amputee now), so they just wrote it off and went on to the next guy.

 

[Flash-hider]

Why don't they just cut to the chase and do what they really want to do all along? All money is sent to the irs and after all with holdings are satisfied the irs dribbles back to us what's left.

 

[russc2542]

Well this could get awkward. The club treasurer didn't have online payments ready when I told members to ask about electronic payments so I used my venmo & paypal. Better get a receipt when I pass it on I guess.

 

[amboy49]

I’ll admit I haven’t followed the whole thread so my apologies if my comments have been made by others. Those who sell an item from time to time on eBay shouldn’t be subjected to aggressive oversight by the government.

With that being said I have two friends that have their own small business. They make no secret that they don’t report all of the anual income. They then claim every possible business deduction (which is legal). I have no problem with them claiming all legal exemptions. It does rankle me that it’s obvious the two friends ( and hundreds of thousands of others) are underpaying their tax liability.

All of the income I‘ve received during my working life has been reported as w-2 or 1099 income. My friends frequently remind me our gross incomes aren’t far apart - yet their tax liability is significantly lower. They counter my insults with the assertion they have to pay for their own health insurance, pay both parts of the unemployment tax, and receive less than me in SS income upon retirement.

Regardless of how imposed, the system will never be “equitable”, let alone fair.

 

[Hawkeye7br]

Personally, I think if you have a primary income, like a job that you work 40+ hours a week, you should pay income tax on that income source only. Any part time income should be untaxed. The incentive to accept part time work would be so great, every restaurant and small business in the country would be fully staffed.

 

[bwframe]

Personally, I think if you have a primary income, like a job that you work 40+ hours a week, you should pay income tax on that income source only. Any part time income should be untaxed. The incentive to accept part time work would be so great, every restaurant and small business in the country would be fully staffed.

I have known some contractors over the years that done small side jobs for cash. Some were clearer than others about how the financials were handled. The sharp ones had it figured out and laid out conditions up front. "Cash at the end of the day, NO checks." If the discussion came to taxes, "YOU were quoted a net cash price for the work. YOU are assuming any tax liability and our agreement is that YOU are paying it."

I did a stint as a night club manager. Sunday at closing, as per long time custom, the bands were paid in cash out of the register. We required a receipt with signature and social security number for taxes. After the band leaders got to know you, they'd joke about signing a sloppy Bugs Bunny and ask how many numbers are there in a social security number again?

 

[tbhausen]

It’s only a matter of time, precious metals, ammunition, and food. That will be the currency. Hopefully my time on this rock will have ended by then.

 

[Shadow01]

Most repair shops jack up the cost of parts to minimize the labor charge and reportable income. Nothing new.

 

[Leo]

Most repair shops jack up the cost of parts to minimize the labor charge and reportable income. Nothing new.

The profit made on buying parts and supplies wholesale and selling them to the customer retail is taxable. This is in addition to the sales tax collected on the parts. The taxman always wins. A few may get by and pay less, but ol' taxman hits up someone else extra. About the only people that get past the IRS is pimps, drug dealers and the biggest whores, Politicians.

 

[JettaKnight]

Well, tracking started January 1, 2022. If the IRS finds out you made taxable income that was not reported, regardless of the payment mechanism, going back as far as the statute of limitations, they can come after you.

The operative word is "can". Given how overworked and under staffed the IRS is, I won't be losing any sleep over this.

 

[HoughMade]

The operative word is "can". Given how overworked and under staffed the IRS is, I won't be losing any sleep over this.

I'm not losing any sleep over it because I grudgingly, and with great resentment, pay every penny I owe under the tax code.