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

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1099-K IRS Delay: What PayPal, Venmo and Cash App Users Need to Know This Tax Season

The federal tax agency has delayed launching its 1099-K reporting rule for two years in a row.

www.cnet.com

Payment apps will now have to report transactions to IRS

The IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.

www.dailymail.co.uk

Venmo, PayPal and Zelle must report $600+ in transactions to IRS

Starting Jan. 1, mobile money apps like Venmo, PayPal and Cash App must report annual commercial transactions of $600 or more to the Internal Revenue Service.

www.nbcnews.com

There’s a new tax rule for US small business owners. What to make of it? | Gene Marks

The IRS will look into the digital payment service accounts of small businesses, freelancers and independent contractors

www.theguardian.com

 

[jsharmon7]

This has come up on some of the online hobby forums. Even if you’re losing money buying/selling/trading in your hobby, you have to prove it to the IRS. So you pay $1,000 for a 1911. You then sell it to me for $750 and let me pay you via PayPal. You have to prove your loss at the end of the year, otherwise you owe tax on that $750 you “made.”

 

[EyeCarry]

I have been predicting for years that eventually even your garage sale, uh, stuff, will be taxed.
How long has it been now since out-of-state sales companies such as eBay have been charging your local state tax? Not to hijack the thread, it just doesn't surprise me.

 

[bgcatty]

And yet people like Bezos, Buffet, Gates and their ilk who have billions and billions pay little to no taxes! But the IRS is worried about people reporting $600/year in sales? Seriously?

 

[Ingomike]

Creeping ever closer to total government control of monetary transactions, even as they try to make it harder to pay cash. Banks are now reporting cash deposits of $600 or more so I read. So even if you do a cash transaction, unless you spend it as cash it will be reported.

We should have the 700 month protest, where for a month everyone withdraws $700 and deposits it several times a day. It would break the system…

 

[Ingomike]

And yet people like Bezos, Buffet, Gates and their ilk who have billions and billions pay little to no taxes! But the IRS is worried about people reporting $600/year in sales? Seriously?

All the money the billionaires have would not fund this government more than a few days…

 

[KokomoDave]

It's all a out controlling wealth that the common man uses. The elites don't garner the meager sums we make but suggest to .gov to track it as a means to pay any BBB bullsnot.

 

[Hatin Since 87]

I assume we’ve taken care of the border crisis, crime rates, voting irregularities, and the world is at peace if we have the money and resources to devote to monitor **** like this...

 

[Ingomike]

I assume we’ve taken care of the border crisis, crime rates, voting irregularities, and the world is at peace if we have the money and resources to devote to monitor **** like this...

Naaa, This is an order, it costs the business money to report, it do cost .gov anything…

 

[Hatin Since 87]

Naaa, This is an order, it costs the business money to report, it do cost .gov anything…

**** their orders. They wonder why people are becoming so extreme. They’re the reason. Leave us the **** alone

 

[bwframe]

This thread could have sunk into the morass of the political forum.

I thought the average INGOer, that might avoid that forum, needed to see this. It does effect some of us that use those online payment systems for trading payment.

This is a Biden administration directive to "their" IRS. Taxes are pretty important to the way they "govern." They want every dime of "their money."

Three more years...

 

[Jaybird1980]

This post could have sunk into the morass of the political forum.
I thought the average INGOer, that might avoid that forum, needed to see this. It does effect some of us that use those online payment systems for trading payment.

This is a Biden administration directive to "their" IRS. Taxes are pretty important to the way they "govern." They want every dime of "their money."

Three more years...

Can't be true. The Bidiot said your taxes won't go up if you make less that $400k

 

[churchmouse]

Creeping ever closer to total government control of monetary transactions, even as they try to make it harder to pay cash. Banks are now reporting cash deposits of $600 or more so I read. So even if you do a cash transaction, unless you spend it as cash it will be reported.

We should have the 700 month protest, where for a month everyone withdraws $700 and deposits it several times a day. It would break the system…

Biden/knee pads combo puts us 1 step closer to this.

 

[HoughMade]

Not that I'm a fan of any government expansion, but this is simply an enforcement mechanism for taxes that were previously owed. People are supposed to report their income and pay taxes on it. This is just a way to track actual income.

[ETA] Sorta related, imagine my shock and surprise when, while studying for the bar exam (24 years ago) learned of something called the "use tax". Y'all know that you're supposed to by 7% "use tax" on any personal property you buy where at least 7% was not collected, right? Remember all that stuff bought online or (back in the day) from catalogs where the vendor did not collect sales tax? Yep.

 

[churchmouse]

"NO POLITICS IN THE BREAK ROOM"

I agree we all need to see this but "NO POLITICS IN THE BREAK ROOM"

Please

 

[bwframe]

Not that I'm a fan of any government expansion, but this is simply an enforcement mechanism for taxes that were previously owed. People are supposed to report their income and pay taxes on it. This is just a way to track actual income.

[ETA] Sorta related, imagine my shock and surprise when, while studying for the bar exam (24 years ago) learned of something called the "use tax". Y'all know that you're supposed to by 7% "use tax" on any personal property you buy where at least 7% was not collected, right?

Yes, enforcement starting Jan 1, 2022.

 

[HoughMade]

Yes, enforcement starting Jan 1, 2022.

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.

 

[Aggar]

Can't be true. The Bidiot said your taxes won't go up if you make less that $400k

That why they had to come up with a new way to get taxes.

 

[BugI02]

Not that I'm a fan of any government expansion, but this is simply an enforcement mechanism for taxes that were previously owed. [an egregious infringement upon 4th amendment rights as well as a fishing expedition] People are supposed to report their income and pay taxes on it. This is just a way to track actual income.

"The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures shall not be violated."

Kinda thought we had moved away from 'guilty until you prove yourself innocent' with the same revolt

 

[HoughMade]

"The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures shall not be violated."

Kinda thought we had moved away from 'guilty until you prove yourself innocent' with the same revolt

I feel the same way about W-2s and 1099s.

BTW- they are not searching "your" papers- they are having the vendors report transactions...not really different from 1099s.