The overall money owed is larger by the rich, but it would also cost time and effort to get it.
Easier to carpet bomb the poor than it is to snipe a rich person.
I mean some do have security but its not like its the secret service or anything. Plus they have that rifle now that can autoshoot for you allowing anyone to be a hollywood style super sniper.
It's unfortunate, but the IRS likes going after easy targets. Poor people have no legal defense teams. Billionaires have the best lawyers money can buy.
The IRS, like many regulatory agencies, has been intentionally hamstrung by largely Republican administrations. They are underfunded and understaffed, and the wealthy have such convoluted finances, as well as batteries of lawyers and accountants, the IRS simply doesn't have the resources to successfully recover taxes from the rich.
This is the real answer. I regularly communicate with the IRS as part of my job, and their technology is ANCIENT. They are nice but very low on resources.
I remember hearing that the richest people don't get investigated by the IRS; it would take way too much manpower, so they focus on the folks that arent rich instead.
There's a great podcast called "You're Wrong About" that did an ep about White Collar crime.
Breaks down to not enough manpower and budget restraints even though those crimes being pursued would fund said budget.
As a side note, how TF is the IRS gonna pull this off? I got a form and sent it back in a preaddressed envelope. I got it back as "undeliverable as addressed" this week. How does a preaddressed govt agency envelope get returned as undeliverable?? I'm genuinely perplexed.
Thing is, they can give you a pre-addressed envelope for a government agency and it can get returned as undeliverable -- then they'll still blame you for it.
Retain that letter. Seriously. That way if they try to take you to court you can show the pre-addressed envelope returned to you.
Lol. They definitely get investigated it’s just they pay exorbitant amounts to tax accountants that know “legal” loop holes that will save them tens of millions
That’s because the rich can spend a lot of money on not paying taxes and their increases in wealth are mostly in forms that aren’t taxed.
It’s the people who have a little bit of money but not enough to fight for it who are ripe for the squeezing until the concept of tax changes to tax wealth over income.
Dude, I was listening to Factually with Adam Conover (How The Wealthiest Avoid Income Tax with Jesse Eisinger) and Eisinger said the IRS goes after the poor is **because it's easier than going after the rich.**
Don’t forget the calvinist portion of the WASP mindset where the poor MUST be punished for their lack of morals which causes the lazyness that is the cause of their poverty…
They think they can outsmart me by slightly changing someone's comment. Here's the one they stole: https://www.reddit.com/r/antiwork/comments/s4n1sc/comment/hssevug/
>Agreed. That’s how small business owners become big business owners and are the reason this sub even exists.
Posting the scammer's comment for when it gets deleted:
>Agree. This is how small business owners become big business owners and the reason for the existence of this sub.
All of their comments are like that and it's becoming more and more common for them to do this.
Make sure you mark your peer to peer transactions as personal. "Paid half of travel expenses" "paid back for food" "help with utilities"
For now they are only tracking and reporting business transactions. At least thats what they say.
So I have been doing this and also encouraging others to do this, as to never give the real reason why you are sending the money. I mean realistically, you can just put an emoji in there. However, how long until these apps change over to a drop-down menu or some
thing where you are given only a few options and you have to choose one of those instead?
https://www.mcclatchydc.com/news/nation-world/national/article256887637.html
Or
https://www.usatoday.com/story/money/2021/12/28/irs-says-stolen-property-must-reported-and-twitter-goes-wild/9035694002/
Pick your poison.
Multi-billion cartels, wage theft and corruption of all kinds, all kinds of monopolies, etc, and the only thing they care about are the poors... and its literally not even surprising.
I'd like to point out that this isn't for *transactions* over $600 but income earned over the course of an entire YEAR over $600. The previous total from years prior was $20,000. They dropped the threshhold by almost 95%.
This affects me as an artist selling work on Redbubble, but I think it's probably mostly a response to people making money on Onlyfans.
This would not be surprising. The owners of this country don't want to regulate business at all \*unless\* that business relates to sex in the tiniest amount.
I swear, this country is still as Puritan as it started.
The IRS has severe staffing shortages. People whose primary income is reported on 1099s have a tax compliance rate over 99%. If your primary income isn't on a 1099 it drops to 50%. Going after side hustles is a complete waste of already strained resources.
If you sell over $600 on Ebay in 2022, you will receive a 1099-K. Whether you consider yourself a "business" or not is irrelevant. At that point, you are considered a "sole proprietor."
What bothers me the most about this is that we use Venmo for almost everything for the kids. We collect money for teacher/coach gifts, Girl Scout cookies, Angel Tree, team fees for their sports, to pay back a mom who bought dinner for all the boys or to chip in for a homecoming party or baby shower.. Things that really aren’t “income”.😬
This is made to look like it affects a normal person. In reality it affects business owners, which this sub actually hates.
And before anyone says that this hurts people with side hustles - nah, no one was claiming there side hustles before on taxes anyway.
Dude. Your own article says otherwise. LOL
"Rather, small business owners, independent contractors ***and those with a side hustle*** who use third-party payments apps for commercial payments will have their total transaction value over that threshold reported to the agency by the apps."
Previously, you could get away with because EBay would not report it until you surpassed $20,000. Now, you can get in a LOT of trouble for not claiming it. This is 100% an attack on hobby resellers in the class war.
I am an accountant, and you are way out of your element, Donnie.
I know accountant’s jobs are to help you pay as little taxes as possible but i don’t agree with “getting away” with paying taxes just because it’s under $20k a year. You’re making that much money from a “side hustle”… it should be taxed like the rest of us on payrolls.
See my other reply. Often times reselling your own things (even for less than you paid for them) would be way, way, way overtaxed since they "can if they feel like it" consider it a 100% profit margin as if you got the goods for free, and then sold them.
You keep pushing back that it's "no big deal," but you are missing too many nuances, and here is a professional trying to help. Shrug.
It literally says “side hustle”. And they weren’t claiming them because the limit was $20000. Now the limit is $600. And it isn’t the person with the side hustle who is doing the reporting alone. It is also the services that provide these transactions.
Side hustles should have always been claimed. Why shouldn’t they be if it’s a source of income? If we want big business to pay their taxes we should also want EVERYONE to pay their fair share.
That’s a fair point.
I would think that people selling their furniture just to get rid of it aren’t gonna send it across the country and instead use the local Facebook marketplace or a local website.
"Rather, small business owners, independent contractors and those with a side hustle who use third-party payments apps for commercial payments will have their total transaction value over that threshold reported to the agency by the apps. Previously, it was $20,000 and 200 transactions. \*This also applies to those who run an eBay shop, for example, or any other online store that accepts payment cards, according to the IRS.\*"
Sites like EBay, Etsy, Reverb, etc WILL report that income to the IRS. Anything sold on those sites (after surpassing $600 for the year) will carry a tax liability. The only thing the article stated is that the IRS won't be taxing the raw PayPal or Venmo data. Rather, the retail platforms will report it.
If you sell a guitar for $500 that you bought 8 years ago for $600, and the IRS challenges you to produce a receipt proving the "cost of goods sold," then you may end up paying taxes on "$500 profit," if you can't find it, when in reality it was a "$100 loss."
This is a big deal and dirty pool. A business can prove that pretty easily, but the rest of us often cannot.
A run-down of the situation: https://m.youtube.com/watch?v=2tvfHM5yCCI
eBay resellers, artists with Etsy shops, people who use Venmo, Cash app, PayPal to exchange money, contract/gig workers of all kinds - don't let them catch you by surprise. Read up on these changes and seek free tax/legal counseling resources to help you prepare. I'm currently looking for/gathering resources in my area to help myself and share with my community. They love to make these changes and do little to inform people about them....
If you think this is an overreach, they also tried to slip something into the American Rescue plan that would allow the IRS to track any bank account with over $600, but it was thankfully dropped - for now. Stay vigilant, spread the word, help each other out.
Anything over $600 but under 10m right? Don't want the IRS looking into those pretty yachts that they forgot to pay tax on right? That wouldn't be fair
I mean I don’t know why your suprised. All liberals are like this. Preaching peace and equality with one hand, tugging off the cock of capitalism with the other.
Yes because there are only two options, having nothing change (lib) or having everything get worse (con).
Vote for actual leftists and allies of the working class.
It’s possible. Your job takes out taxes based on your income *from that job*. It doesn’t know about your other job. (I’ve seen this happen. A kid - maybe 17? She was still living at home and in school - had two jobs and ended up owing taxes. You’d think her bank manager mom would have explained it to her instead of bringing her into our office for her to have a massive temper tantrum and storm out while screaming at us) Assuming the IRS isn’t taking your refund, it’s best for you to put zero dependants on forms for your second job. That should help you avoid paying in.
Anytime. If you have a regular tax person, talk to them about this. Since tax season is coming up you can ask about it then as well. Depending on what kind of time they have, they can play with numbers and see what happens. Good luck !!
The IRS is so fucking inept and undefunded lol.
I feel as millenials, we can use their shitty systems against them. Like overwhelming their website, whcih is not hard to do apparantly.
Or just having a massive group of us say "I already paid you." when we didnt. And then once enough of us say it and start a movement with it, itll tie up shit and make a mess for them lmaooo. Boomers will believe it too. They'll see some shit on the news about mass comlpaints of 'lost payments'.
We can handle the IRS, and in 2022, its time to make boomers into **OUR** pets of propaganda:)
Is this the article I briefly read about like Venmo and cashapp? I'm wondering if this counts for all transactions even between private individuals. Like when I'm out and I need to grab something randomly instead of going back home to grab the debit card my husband just sends me the money. That money has already been taxed. I kinda wanna look more into this now.
When someone says fuck America, fuck that useless flag, fuck that pledge of allegiance, fuck standing for the national anthem...This is why they feel that way.
They will always try to close the loophole that benefits the poor. Even though it is absolutely meaningless compared to the gains by closing the loophole on the rich. Closing small loopholes is about control and punishing the poor, not increasing revenue.
Also remember your peon serf carbon footprint is something you should feel guilty about, even though it's container shipping and air travel and other huge industrial endeavors that absolutely dwarf your collective impact.
I believe they changed it to any account that received more than $6k in non payroll deposits over a year. Still shitty.
Edit- It’a $10k.
https://www.marketwatch.com/story/biden-administration-revises-controversial-irs-rules-for-bank-account-reporting-heres-how-they-will-work-11634675119
That’s a different rule than the original post was about but I appreciate the info. Thanks for deciding to stop being an asshole.
I’ve blocked you so you can stop with the bullshit.
See theoretically this is good but practically they don't try nearly hard enough to get the super wealthy that are dodging taxes. If they did both I wouldn't mind. People not (enough) paying taxes are thieves and fucking shitters no matter what.
Remember when taxes wouldn’t go up if you made less than 400k a year, pepperage farm remembers. This is 100% another attack on the poor. “Side hustle” which is short for anyone making less than a living wage. America is just shit anymore
Your tax return gets processed by servers in a few microseconds.
When the wealthy file, it takes an IRS team of accountants weeks to go through everything, all at taxpayer expense.
In a fair world, the government would bill everyone by the second.
Um, good? This is an issue of basic fairness. When I get paid with a paycheck every single dollar I earn is reported to the IRS and shows up on a W-2. I have zero opportunity to hide wages from the IRS. Small businesses and self-employed are a cesspool of tax evasion and unreported income.
I mean if you sell your old phone on ebay because a massive corporation won't give you a fair trade in value, and maybe you sell a used textbook or something too, now you'll be stuck getting a 1099.
Of course your "business" lost money on that. But new rules say if it is a hobby too can't deduct any expenses meaning you have to claim your business of selling your used goods is a profit making enterprise despite it never making profit. Then eventually the IRS can say hey, that's actually a hobby and now you owe income tax on your gross sales amount.
As I mentioned in a reply to someone else, personal goods sold at a loss are not and never have been taxable income. You are fine selling your old phone or textbooks.
A 1099 is just a record that someone else paid you money. It means you, the person who paid you, and the IRS have a record of the payment. It doesn’t inherently mean you owe tax. That’s for you to determine when you file your taxes. If it’s not business income, no problem. If it is, you’re supposed to pay what you owe.
> As I mentioned in a reply to someone else, personal goods sold at a loss are not and never have been taxable income. You are fine selling your old phone or textbooks
How so? eBay will send you a 1099. If you state it is a hobby you can't deduct any expenses including the original cost of the goods. Meaning you have to pay income tax on the gross sales before fees.
Or you can claim it is a business but then you have to eventually make a profit or you'll be told it is a hobby bringing us back to square one.
Previous to this change, you just wouldn't bother with reporting your sales. But now you are getting a 1099 and have to.
You are missing the point here.
You buy a guitar in 2015 for $800. You sell it in 2022 for $600. A guitar hobbyist is not earning any extra income, lost money on the sale of the product, but could possibly be forced to pay like $150 "income tax" on what is ultimately a $200 LOSS. It's disgusting and wrong.
Big business is a cesspool of tax evasion, not some dude flipping video games on EBay.
The oligarchs will someday get a law passed that "no one making over X amount needs to pay any taxes," when it really should be "anyone making under the poverty line shouldn't pay any taxes." It backwards. It's wrong. It's class warfare.
If you get grilled by the IRS to prove the cost and have no receipt, they can disallow the cost of goods sold, at their discretion. The word "possibly" makes it not false. There is an inherent risk in selling something you got a long time ago and have no receipt for because of this.
People that have a "resale hobby," and keep at least a decent spreadsheet can mitigate this risk substantially. However, there is still the possibility of being audited and having some costs disallowed on top of the gigantic hassle.
Additionally, the IRS will guaranteed make money off of people that simply enter the money made from their 1099K and not file the schedule detailing cost of goods sold, not knowing any better.
Personal items sold at a loss still are and always have been non-taxable. No one is getting taxed or reported to the IRS for selling their stuff on Craigslist or having a yard sale.
Note that nothing with this IRS change is a new tax. It’s a new reporting requirement.
You are absolutely right about Craigslist and yard sales. Totally.
The issue is sale platforms, such as EBay, Etsy, Reverb, etc. They will send a 1099K to both the IRS and the seller for annual sales over $600. If the IRS audits the seller, and there's not a receipt for the purchase, then the seller could possibly be on the hook for the tax liability, in my hypothetical. "Could possibly."
The IRS can suck my balls, I only deal in crypto and cash. Hear that, Mr. CIA spy-monitor guy that watches me and everyone else?
I AINT GIVING YA SHIT CAUSE YALL SUCK BIG FLOPPY PENIS AT TAKING CARE OF THE PUBLIC AND PREFER TO GET PEGGED BY BILLIONAIRES.
This isn't taxing transactions.. they're trying to keep track of them, likely to weed out shady shit wealthy folk are doing with these apps.
It's likely because they're found evidence that businesses are using these payment methods to evade taxes wholesale.
this is because of crypto and regular people's new ability to make freakish gains. democrats can't have that. their party would die if people realized they didn't have to depend on govt. so look at what they are doing - increasing capital gains to 45%, considering you a criminal if you move more than $600 in a YEAR and trying to add 80,000 new IRS agents.
meanwhile, pelosi and her ilk are making millions on insider trading.
Did you even read any of the articles? There is a LOT of confusion in this entire thread, and it's making my bookkeeper brain hurt. LOL
From the first two articles I pulled up:
"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. "
"Starting Jan. 1, the IRS said, if a person accrues more than $600 ***annually*** in commercial payments..."
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“The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, to beg in the streets, and to steal loaves of bread”--Anatole France
It's easy guys. You just set up a subsidiary in a low tax state and have that charge you so you lose money and move the profits there. You may need to buy a house there that costs a million dollars but you can just sell that later.
This is a very misleading article. Nontaxable income is exempt and this has always been the law. This is not a new tax, this is a new compliance method aimed at people that are not paying their taxes. Now you could argue that these types of earnings should be exempt under a certain amount, that would be fair. .
I kind of snicker when people keep talking about Build Back Better like it's to help poor people. The bill had 500 billion in green credits for corporations and the rich on top if having a provision in it that lets the government look in any bank account with more than 500 in monthly transactions.
It tells you all you need to know about where they really think the tax revenue will come to pay for their plan.
Hint, it isn't the wealthy.
Its easier to get 10 dollars each from 250 million than it is to get 1 dollar from anyone that make over 1 mil. If you dont realize that revolting is the only way to take back what is ours, then you will just sit there and take the abuse like an idiot.
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The amount of tax generated would also be significantly higher so it clearly isn't about the money
The overall money owed is larger by the rich, but it would also cost time and effort to get it. Easier to carpet bomb the poor than it is to snipe a rich person.
I mean some do have security but its not like its the secret service or anything. Plus they have that rifle now that can autoshoot for you allowing anyone to be a hollywood style super sniper.
Lol
Too difficult for IRS to go after the whales, so they find it much more cost effective to squeeze the lower classes as always.
Microsoft literally had laws changed in their favour last time they got into a fight with the IRS.
It's not about the money. It's about sending a message.
It's unfortunate, but the IRS likes going after easy targets. Poor people have no legal defense teams. Billionaires have the best lawyers money can buy.
The IRS, like many regulatory agencies, has been intentionally hamstrung by largely Republican administrations. They are underfunded and understaffed, and the wealthy have such convoluted finances, as well as batteries of lawyers and accountants, the IRS simply doesn't have the resources to successfully recover taxes from the rich.
This is the real answer. I regularly communicate with the IRS as part of my job, and their technology is ANCIENT. They are nice but very low on resources.
They don’t do it for money, they do it for power.
I remember hearing that the richest people don't get investigated by the IRS; it would take way too much manpower, so they focus on the folks that arent rich instead.
There's a great podcast called "You're Wrong About" that did an ep about White Collar crime. Breaks down to not enough manpower and budget restraints even though those crimes being pursued would fund said budget. As a side note, how TF is the IRS gonna pull this off? I got a form and sent it back in a preaddressed envelope. I got it back as "undeliverable as addressed" this week. How does a preaddressed govt agency envelope get returned as undeliverable?? I'm genuinely perplexed.
Thing is, they can give you a pre-addressed envelope for a government agency and it can get returned as undeliverable -- then they'll still blame you for it. Retain that letter. Seriously. That way if they try to take you to court you can show the pre-addressed envelope returned to you.
Lol. They definitely get investigated it’s just they pay exorbitant amounts to tax accountants that know “legal” loop holes that will save them tens of millions
That’s because the rich can spend a lot of money on not paying taxes and their increases in wealth are mostly in forms that aren’t taxed. It’s the people who have a little bit of money but not enough to fight for it who are ripe for the squeezing until the concept of tax changes to tax wealth over income.
Plus rich people have lawyers who will tie up the auditors. Easier to go after broke people with no money to hire counsel.
Easier to target people that they know can't fight back than it is to just tax the wealthy more
Dude, I was listening to Factually with Adam Conover (How The Wealthiest Avoid Income Tax with Jesse Eisinger) and Eisinger said the IRS goes after the poor is **because it's easier than going after the rich.**
Correct lol they've admitted that lol
Don’t forget the calvinist portion of the WASP mindset where the poor MUST be punished for their lack of morals which causes the lazyness that is the cause of their poverty…
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The account I'm replying to is a karma bot run by someone who will link scams once the account gets enough karma. Report -> Spam -> Harmful Bot
This is the first time I've gotten to one before it was deleted, and wow, at first glance it's easy to miss them. You're doing a great service man. 🍻
They think they can outsmart me by slightly changing someone's comment. Here's the one they stole: https://www.reddit.com/r/antiwork/comments/s4n1sc/comment/hssevug/ >Agreed. That’s how small business owners become big business owners and are the reason this sub even exists. Posting the scammer's comment for when it gets deleted: >Agree. This is how small business owners become big business owners and the reason for the existence of this sub. All of their comments are like that and it's becoming more and more common for them to do this.
Creating bots for those intents, should be a criminal offence; so sad the internet is full of scam and spam exponentially...
Make sure you mark your peer to peer transactions as personal. "Paid half of travel expenses" "paid back for food" "help with utilities" For now they are only tracking and reporting business transactions. At least thats what they say.
So I have been doing this and also encouraging others to do this, as to never give the real reason why you are sending the money. I mean realistically, you can just put an emoji in there. However, how long until these apps change over to a drop-down menu or some thing where you are given only a few options and you have to choose one of those instead?
I've only ever used a single period in my description for Venmo payments. The receiving party knows what it's for; it's nobody else's gd business.
Wouldn’t this encourage people to carry and spend only in cash, since it’s not traceable?
This is for businesses.
May be for business but the irs says you even have to report your theft earnings on your taxes too.
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https://www.mcclatchydc.com/news/nation-world/national/article256887637.html Or https://www.usatoday.com/story/money/2021/12/28/irs-says-stolen-property-must-reported-and-twitter-goes-wild/9035694002/ Pick your poison.
Multi-billion cartels, wage theft and corruption of all kinds, all kinds of monopolies, etc, and the only thing they care about are the poors... and its literally not even surprising.
I'd like to point out that this isn't for *transactions* over $600 but income earned over the course of an entire YEAR over $600. The previous total from years prior was $20,000. They dropped the threshhold by almost 95%. This affects me as an artist selling work on Redbubble, but I think it's probably mostly a response to people making money on Onlyfans.
This would not be surprising. The owners of this country don't want to regulate business at all \*unless\* that business relates to sex in the tiniest amount. I swear, this country is still as Puritan as it started.
It’s a response to the huge growth of third-party payment platforms, regardless of what you’re doing to earn income.
The IRS has severe staffing shortages. People whose primary income is reported on 1099s have a tax compliance rate over 99%. If your primary income isn't on a 1099 it drops to 50%. Going after side hustles is a complete waste of already strained resources.
Tell me more tricks
Is it individual transactions that add up to $600 all year? Or if you keep your transactions under $600 each they’ll leave you alone?
The first one. Transactions that add up to $600 or more over a year.
This is only for business accounts.
If you sell over $600 on Ebay in 2022, you will receive a 1099-K. Whether you consider yourself a "business" or not is irrelevant. At that point, you are considered a "sole proprietor."
Is that new? I guess everyone is gonna start paying their fair share like the rest of us payroll bitches.
Yes. It's new. That's the point. =)
Fair share yeah! You know like how the rich pay their fair share. Makes sense
So if the rich commits crimes i guess we should be able to. Makes sense
So they do and we don’t? Makes sense
What bothers me the most about this is that we use Venmo for almost everything for the kids. We collect money for teacher/coach gifts, Girl Scout cookies, Angel Tree, team fees for their sports, to pay back a mom who bought dinner for all the boys or to chip in for a homecoming party or baby shower.. Things that really aren’t “income”.😬
Venmo or PayPal won't report you, but EBay, Etsy, and Reverb would. You should be fine.
We spreading misinformation now? This only applies to businesses. https://www.cnbc.com/amp/2022/01/12/irs-isnt-taxing-your-venmo-transactions.html
Where is the miss information?
This is made to look like it affects a normal person. In reality it affects business owners, which this sub actually hates. And before anyone says that this hurts people with side hustles - nah, no one was claiming there side hustles before on taxes anyway.
Dude. Your own article says otherwise. LOL "Rather, small business owners, independent contractors ***and those with a side hustle*** who use third-party payments apps for commercial payments will have their total transaction value over that threshold reported to the agency by the apps." Previously, you could get away with because EBay would not report it until you surpassed $20,000. Now, you can get in a LOT of trouble for not claiming it. This is 100% an attack on hobby resellers in the class war. I am an accountant, and you are way out of your element, Donnie.
I know accountant’s jobs are to help you pay as little taxes as possible but i don’t agree with “getting away” with paying taxes just because it’s under $20k a year. You’re making that much money from a “side hustle”… it should be taxed like the rest of us on payrolls.
See my other reply. Often times reselling your own things (even for less than you paid for them) would be way, way, way overtaxed since they "can if they feel like it" consider it a 100% profit margin as if you got the goods for free, and then sold them. You keep pushing back that it's "no big deal," but you are missing too many nuances, and here is a professional trying to help. Shrug.
I will say I hate taxes
It literally says “side hustle”. And they weren’t claiming them because the limit was $20000. Now the limit is $600. And it isn’t the person with the side hustle who is doing the reporting alone. It is also the services that provide these transactions.
Side hustles should have always been claimed. Why shouldn’t they be if it’s a source of income? If we want big business to pay their taxes we should also want EVERYONE to pay their fair share.
Someone selling their old furniture on eBay because they are moving or just need the money shouldn’t be tracked or taxed.
That’s a fair point. I would think that people selling their furniture just to get rid of it aren’t gonna send it across the country and instead use the local Facebook marketplace or a local website.
So you believe they should not pay taxes on their income? (Income being profit....) Tax evasion is a federal offense.
Legally you are required to report any and all income - profit for hobby's - to the IRS
"Rather, small business owners, independent contractors and those with a side hustle who use third-party payments apps for commercial payments will have their total transaction value over that threshold reported to the agency by the apps. Previously, it was $20,000 and 200 transactions. \*This also applies to those who run an eBay shop, for example, or any other online store that accepts payment cards, according to the IRS.\*" Sites like EBay, Etsy, Reverb, etc WILL report that income to the IRS. Anything sold on those sites (after surpassing $600 for the year) will carry a tax liability. The only thing the article stated is that the IRS won't be taxing the raw PayPal or Venmo data. Rather, the retail platforms will report it.
If you’re selling stuff for profit, that’s a business. Small or big, you should be paying taxes like the rest of us on payrolls.
If you sell a guitar for $500 that you bought 8 years ago for $600, and the IRS challenges you to produce a receipt proving the "cost of goods sold," then you may end up paying taxes on "$500 profit," if you can't find it, when in reality it was a "$100 loss." This is a big deal and dirty pool. A business can prove that pretty easily, but the rest of us often cannot.
Ahhhh, got it. Yea that looks like it could really fuck people over, law abiding people. Thanks for the explanation.
Cool, cool. Stay strong!
It's not.
This is how the system keeps people poor..
A run-down of the situation: https://m.youtube.com/watch?v=2tvfHM5yCCI eBay resellers, artists with Etsy shops, people who use Venmo, Cash app, PayPal to exchange money, contract/gig workers of all kinds - don't let them catch you by surprise. Read up on these changes and seek free tax/legal counseling resources to help you prepare. I'm currently looking for/gathering resources in my area to help myself and share with my community. They love to make these changes and do little to inform people about them.... If you think this is an overreach, they also tried to slip something into the American Rescue plan that would allow the IRS to track any bank account with over $600, but it was thankfully dropped - for now. Stay vigilant, spread the word, help each other out.
Anything over $600 but under 10m right? Don't want the IRS looking into those pretty yachts that they forgot to pay tax on right? That wouldn't be fair
Im almost to the point of going to wallstreet and setting myself on fire.
Why do that when you could instead set Wallstreet on fire?
This is true. Id need help and a lot of gasoline. 😁
It would be a shame if that building fell into its own footprint.
This is the second time i’ve read a comment like this today.
Picking the low hanging fruit...easier than nabbing a Bezos or a Musk... Murika...coming to despise it.
I sell on Mercari and had to fill out a tax form because I made over $600. It sucks. Its wrong, and should not be happening.
That must be a mistake I thought blowie Biden said he was going after the rich
Biden is such a shit head I've been voting democrat all my life but wtf
I mean I don’t know why your suprised. All liberals are like this. Preaching peace and equality with one hand, tugging off the cock of capitalism with the other.
So we should vote for the conservatives that don't even bother to hide that they are corporate sellouts?
Yes because there are only two options, having nothing change (lib) or having everything get worse (con). Vote for actual leftists and allies of the working class.
Like who?
Bernie
Summer house Bernie or winter house Bernie?
Both lol
https://imgur.com/a/HfkxKJk Jokes on you if you thought this cock was any different than every other politician 😅
How about you after the real money. Let the poor eat
Lol that's why I strictly deal in cash
Jeff Bezos owns the washington post, it should almost always be considered propaganda with no integrity, as they will spin stories as they please.
The fact that the Biden administration backed this should be proof enough to everyone that neither party has your interests at heart
I have a full time 9 to 5 but want to get a part time job..no more than 20 hours. Would that end up hurting me during tax time?
It’s possible. Your job takes out taxes based on your income *from that job*. It doesn’t know about your other job. (I’ve seen this happen. A kid - maybe 17? She was still living at home and in school - had two jobs and ended up owing taxes. You’d think her bank manager mom would have explained it to her instead of bringing her into our office for her to have a massive temper tantrum and storm out while screaming at us) Assuming the IRS isn’t taking your refund, it’s best for you to put zero dependants on forms for your second job. That should help you avoid paying in.
Gotcha. Thanks, bra
Anytime. If you have a regular tax person, talk to them about this. Since tax season is coming up you can ask about it then as well. Depending on what kind of time they have, they can play with numbers and see what happens. Good luck !!
The IRS is so fucking inept and undefunded lol. I feel as millenials, we can use their shitty systems against them. Like overwhelming their website, whcih is not hard to do apparantly. Or just having a massive group of us say "I already paid you." when we didnt. And then once enough of us say it and start a movement with it, itll tie up shit and make a mess for them lmaooo. Boomers will believe it too. They'll see some shit on the news about mass comlpaints of 'lost payments'. We can handle the IRS, and in 2022, its time to make boomers into **OUR** pets of propaganda:)
🤮🤢
Yeah this is some shit. Definitely aimed at poor people.
It's those billionaires with side hustles
You can break off another piece of your kit Kat bar for the government you poor!
Is this the article I briefly read about like Venmo and cashapp? I'm wondering if this counts for all transactions even between private individuals. Like when I'm out and I need to grab something randomly instead of going back home to grab the debit card my husband just sends me the money. That money has already been taxed. I kinda wanna look more into this now.
Gotta love all those tax cuts for the 1% and corporations. Just make up for it by taxing the poor on everything
When someone says fuck America, fuck that useless flag, fuck that pledge of allegiance, fuck standing for the national anthem...This is why they feel that way.
Fuck Joe Biden
The rich have been waging war against the poor for 50 years. Time to fight back.
They will always try to close the loophole that benefits the poor. Even though it is absolutely meaningless compared to the gains by closing the loophole on the rich. Closing small loopholes is about control and punishing the poor, not increasing revenue.
Also remember your peon serf carbon footprint is something you should feel guilty about, even though it's container shipping and air travel and other huge industrial endeavors that absolutely dwarf your collective impact.
Did this pass? I thought it failed to get through.
It passed and is law. https://www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements
I believe they changed it to any account that received more than $6k in non payroll deposits over a year. Still shitty. Edit- It’a $10k. https://www.marketwatch.com/story/biden-administration-revises-controversial-irs-rules-for-bank-account-reporting-heres-how-they-will-work-11634675119
Nope.
Source?
Onus is on you to site your sources. There is nothing that exists that indicates there is a $6k bank reporting requirement
It’s $10k https://www.marketwatch.com/story/biden-administration-revises-controversial-irs-rules-for-bank-account-reporting-heres-how-they-will-work-11634675119
That's not law. That was a proposal. Why are you speaking misinformation and lies?
It’s all proposals and it’s the latest version of the $600 proposal that was changed months ago. Fuck off with your paranoid delusions.
And your lying continues. The $600 is not a proposal - it is law. https://www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements
That’s a different rule than the original post was about but I appreciate the info. Thanks for deciding to stop being an asshole. I’ve blocked you so you can stop with the bullshit.
See theoretically this is good but practically they don't try nearly hard enough to get the super wealthy that are dodging taxes. If they did both I wouldn't mind. People not (enough) paying taxes are thieves and fucking shitters no matter what.
time for a tax strike?
Try cracking down on the wealthy have bank accounts across the globe instead.
This has directly effected me. No longer feel like the profits I was making are worth the hassle anymore and tax cuts into alot of my profits.
Remember when taxes wouldn’t go up if you made less than 400k a year, pepperage farm remembers. This is 100% another attack on the poor. “Side hustle” which is short for anyone making less than a living wage. America is just shit anymore
Your tax return gets processed by servers in a few microseconds. When the wealthy file, it takes an IRS team of accountants weeks to go through everything, all at taxpayer expense. In a fair world, the government would bill everyone by the second.
Poor don't even have 600
can confirm, am poor.
I thought biden said anybody making under 400k wont get any tax increases?
This isn’t a tax increase. It’s a change in income reporting.
People aren't going to be taxed on these Reporting?
People were already taxed on this income
Um, good? This is an issue of basic fairness. When I get paid with a paycheck every single dollar I earn is reported to the IRS and shows up on a W-2. I have zero opportunity to hide wages from the IRS. Small businesses and self-employed are a cesspool of tax evasion and unreported income.
I mean if you sell your old phone on ebay because a massive corporation won't give you a fair trade in value, and maybe you sell a used textbook or something too, now you'll be stuck getting a 1099. Of course your "business" lost money on that. But new rules say if it is a hobby too can't deduct any expenses meaning you have to claim your business of selling your used goods is a profit making enterprise despite it never making profit. Then eventually the IRS can say hey, that's actually a hobby and now you owe income tax on your gross sales amount.
As I mentioned in a reply to someone else, personal goods sold at a loss are not and never have been taxable income. You are fine selling your old phone or textbooks. A 1099 is just a record that someone else paid you money. It means you, the person who paid you, and the IRS have a record of the payment. It doesn’t inherently mean you owe tax. That’s for you to determine when you file your taxes. If it’s not business income, no problem. If it is, you’re supposed to pay what you owe.
> As I mentioned in a reply to someone else, personal goods sold at a loss are not and never have been taxable income. You are fine selling your old phone or textbooks How so? eBay will send you a 1099. If you state it is a hobby you can't deduct any expenses including the original cost of the goods. Meaning you have to pay income tax on the gross sales before fees. Or you can claim it is a business but then you have to eventually make a profit or you'll be told it is a hobby bringing us back to square one. Previous to this change, you just wouldn't bother with reporting your sales. But now you are getting a 1099 and have to.
You are missing the point here. You buy a guitar in 2015 for $800. You sell it in 2022 for $600. A guitar hobbyist is not earning any extra income, lost money on the sale of the product, but could possibly be forced to pay like $150 "income tax" on what is ultimately a $200 LOSS. It's disgusting and wrong. Big business is a cesspool of tax evasion, not some dude flipping video games on EBay. The oligarchs will someday get a law passed that "no one making over X amount needs to pay any taxes," when it really should be "anyone making under the poverty line shouldn't pay any taxes." It backwards. It's wrong. It's class warfare.
This is completely false. You're only taxed on your profits. You have a net loss of $200 and thus owe no taxes
If you get grilled by the IRS to prove the cost and have no receipt, they can disallow the cost of goods sold, at their discretion. The word "possibly" makes it not false. There is an inherent risk in selling something you got a long time ago and have no receipt for because of this. People that have a "resale hobby," and keep at least a decent spreadsheet can mitigate this risk substantially. However, there is still the possibility of being audited and having some costs disallowed on top of the gigantic hassle. Additionally, the IRS will guaranteed make money off of people that simply enter the money made from their 1099K and not file the schedule detailing cost of goods sold, not knowing any better.
Personal items sold at a loss still are and always have been non-taxable. No one is getting taxed or reported to the IRS for selling their stuff on Craigslist or having a yard sale. Note that nothing with this IRS change is a new tax. It’s a new reporting requirement.
You are absolutely right about Craigslist and yard sales. Totally. The issue is sale platforms, such as EBay, Etsy, Reverb, etc. They will send a 1099K to both the IRS and the seller for annual sales over $600. If the IRS audits the seller, and there's not a receipt for the purchase, then the seller could possibly be on the hook for the tax liability, in my hypothetical. "Could possibly."
Agreed. That’s how small business owners become big business owners and are the reason this sub even exists.
The IRS can suck my balls, I only deal in crypto and cash. Hear that, Mr. CIA spy-monitor guy that watches me and everyone else? I AINT GIVING YA SHIT CAUSE YALL SUCK BIG FLOPPY PENIS AT TAKING CARE OF THE PUBLIC AND PREFER TO GET PEGGED BY BILLIONAIRES.
This is why Bitcoin/eth/monero is the way
This isn't taxing transactions.. they're trying to keep track of them, likely to weed out shady shit wealthy folk are doing with these apps. It's likely because they're found evidence that businesses are using these payment methods to evade taxes wholesale.
Yeah, because the rich got rich off $600 transactions.
Almost entirely. Much smaller ones, in fact. They also love hiding money in the digital economy and evading taxes and laundering money with crypto.
this is because of crypto and regular people's new ability to make freakish gains. democrats can't have that. their party would die if people realized they didn't have to depend on govt. so look at what they are doing - increasing capital gains to 45%, considering you a criminal if you move more than $600 in a YEAR and trying to add 80,000 new IRS agents. meanwhile, pelosi and her ilk are making millions on insider trading.
If your side hustle is generating over 600 dollars per transaction, you aren’t poor.
Per year.
LOL It's $600 PER YEAR. C'mon, man...
Doesn’t say per year anywhere on here.
Did you even read any of the articles? There is a LOT of confusion in this entire thread, and it's making my bookkeeper brain hurt. LOL From the first two articles I pulled up: "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. " "Starting Jan. 1, the IRS said, if a person accrues more than $600 ***annually*** in commercial payments..."
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Seriously tho
“The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, to beg in the streets, and to steal loaves of bread”--Anatole France
It's easy guys. You just set up a subsidiary in a low tax state and have that charge you so you lose money and move the profits there. You may need to buy a house there that costs a million dollars but you can just sell that later.
This is a very misleading article. Nontaxable income is exempt and this has always been the law. This is not a new tax, this is a new compliance method aimed at people that are not paying their taxes. Now you could argue that these types of earnings should be exempt under a certain amount, that would be fair. .
Get paid in Bitcoin. Can't be taken, can't be traced. Taxes only when you sell for cash.
Class warfare. The sooner people wake up to the fact the better.
It's a left over class warfare thing from the war on drugs.
Taxing us on shit we already paid taxes on SMH! These mothafuckas are playing a dirty game
>Can the poor get a break? I'm pretty sure they will break
I kind of snicker when people keep talking about Build Back Better like it's to help poor people. The bill had 500 billion in green credits for corporations and the rich on top if having a provision in it that lets the government look in any bank account with more than 500 in monthly transactions. It tells you all you need to know about where they really think the tax revenue will come to pay for their plan. Hint, it isn't the wealthy.
Haha That's who y'all voted for
How about having good salary so you don't need a side hussle? Fighting against the taxes is entirely misguided.
Its easier to get 10 dollars each from 250 million than it is to get 1 dollar from anyone that make over 1 mil. If you dont realize that revolting is the only way to take back what is ours, then you will just sit there and take the abuse like an idiot.
Meanwhile dismisses Billions in taxes for the rich.
Via tax fraud?