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

[bwframe]

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.

Correct. From the first article posted...

...A provision from the 2021 American Rescue Plan, which went into effect on Jan. 1, directs third-party payment processors to report transactions received for goods or services totaling over $600 per year to the IRS.

Prior to this legislation, a third-party payment platform would only report to the tax agency if a user had more than 200 commercial transactions and made more than $20,000 in payments over the course of a year.

This new law won't apply to your 2021 taxes, which you'll file this tax season. But it will apply to the earnings you make throughout 2022, which you'll report when you file in 2023...

1099-K IRS Tax Delay: What Last Minute Filers Who Use PayPal and Venmo Need to Know

This IRS reporting change was delayed. But you'll still need to report your self-employment income.

www.cnet.com

 

[phylodog]

Time to go back to all cash.

 

[HoughMade]

Correct. From the first article posted...

...A provision from the 2021 American Rescue Plan, which went into effect on Jan. 1, directs third-party payment processors to report transactions received for goods or services totaling over $600 per year to the IRS.

Prior to this legislation, a third-party payment platform would only report to the tax agency if a user had more than 200 commercial transactions and made more than $20,000 in payments over the course of a year.

This new law won't apply to your 2021 taxes, which you'll file this tax season. But it will apply to the earnings you make throughout 2022, which you'll report when you file in 2023...

That last sentence- the great legal minds at CNET. Not accurate. That would seem to imply that taxes are only owed on what is reported by the vendor. The change only affects what is reported by the vendor to the gvt., not what you owe.

 

[bwframe]

That last sentence- the great legal minds at CNET. Not accurate. That would seem to imply that taxes are only owed on what is reported by the vendor. The change only affects what is reported by the vendor to the gvt., not what you owe.

Yes of course. The same as all of the sales taxes we paid to the state prior to Amazon and eBay being forced to collect them.

I believe that the article referenced that the new law requires that the online payment companies report the figures, as listed. They were not required to report prior. Correct?

It was always the customers responsibility to report to the IRS. The difference is, now it's the online company's obligation to report anything within the narrower specified guidelines. Right?

 

[Ingomike]

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.

Yes, an end around the courts should never have allowed. “Your papers” should be secure absent a search warrant no matter who possess them…

 

[HoughMade]

Yes, an end around the courts should never have allowed. “Your papers” should be secure absent a search warrant no matter who possess them…

So records of transactions that any business has with you are "your" papers?

 

[Ingomike]

So records of transactions that any business has with you are "your" papers?

Is it about me? Then it is mine…

 

[armac6]

 

[Shadow01]

So records of transactions that any business has with you are "your" papers?

Businesses could keep anon records to avoid having that personal information. They just choose to keep the personal info as a means to make more money.

 

[DoggyDaddy]

Businesses could keep anon records to avoid having that personal information. They just choose to keep the personal info as a means to make more money.

How would things like refunds be handled if the transactions with a business were anonymous?

Me: I want to return this purchase I made.
Them: Sorry, but we have no record of that purchase. We see that "someone" made a purchase, but we have no idea who it was."

 

[BigRed]

Maybe Rettig is trying to find out who is paying his wife for services.

 

[Shadow01]

How would things like refunds be handled if the transactions with a business were anonymous?

Me: I want to return this purchase I made.
Them: Sorry, but we have no record of that purchase. We see that "someone" made a purchase, but we have no idea who it was."

The “online” transactions that we are discussing have an order number or a transaction number. That is all you need to request and process a refund.

 

[DoggyDaddy]

The “online” transactions that we are discussing have an order number or a transaction number. That is all you need to request and process a refund.

They're still going to require a bank account or credit card number to which they refund the purchase price.

 

[Hatin Since 87]

Where’d they come up with the $600 number? Why not 5...or 7... or 1,000?


“How much does a firearm costs?”

“About $600”


“Ok, there’s our number”

 

[Shadow01]

They're still going to require a bank account or credit card number to which they refund the purchase price.

Same as some vpn providers that don’t retain personal information. Make the payment or refund and clear the info out at the end of business. Once a transaction is complete, billing and payment information that contain personal info can be removed

 

[DoggyDaddy]

Same as some vpn providers that don’t retain personal information. Make the payment or refund and clear the info out at the end of business. Once a transaction is complete, billing and payment information that contain personal info can be removed

Unless you need to return it after it's cleared. For example, I got DoggyMama a pair of jeans for Christmas that were too big. I'm going to need to return them. Payment cleared long ago, but the seller still has my payment info (as they should). If they didn't, how would I be able to be credited for my purchase?

 

[BigRed]

Time to go back to all cash.

Exactly why there is a war on cash.

 

[Hatin Since 87]

Unless you need to return it after it's cleared. For example, I got DoggyMama a pair of jeans for Christmas that were too big. I'm going to need to return them. Payment cleared long ago, but the seller still has my payment info (as they should). If they didn't, how would I be able to be credited for my purchase?

Holy cow, you bought your wife pants that were too big and you’re still alive?!

 

[DoggyDaddy]

Holy cow, you bought your wife pants that were too big and you’re still alive?!

They were size 6 fleece lined jeans. I thought they might run small because of the fleece lining!

 

[BugI02]

So records of transactions that any business has with you are "your" papers?

Now do 'your bank', which is also included in this sweep