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President Biden's 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.
The new reporting requirement will ensure that small businesses that receive payments through those apps are paying their fair share in taxes on them.
Quote:
Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions. Though businesses were always required to self-report such incomes to the IRS, many often did not keep record of their smaller transactions.
The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or they had more than 200 transactions per year.
The new tax law was part of the March 2021 American Rescue Plan, which passed with no Republican votes.
The form to report the information is Form 1099-K, which records services transactions and goods acquired in a calendar year to the IRS.
The new tax law, the $600 rule, will apply to all payments received for service payments and goods, according to the report.
It will not apply to individuals who use a third-party system to send a gift to an individual or for acts like paying someone back for buying dinner, the report noted.
This was part of the American Rescue Plan passed in March 2021. Do you feel rescued by this?
Elections have consequences... better make sure they are honest...
While the law is not new, it has changed. Before, the third-party payment apps were required to report gross income for users who exceeded $20,000 or who had 200 separate transactions within the calendar year. The information is reported on Form 1099-K.
Form 1099-K is used to report to the IRS goods and services payments received by a business or individual in the calendar year.
The $600 rule applies to payments received for goods and services transactions. For instance, if you sell products on Etsy or eBay, you will get a 1099-K form if you sell more than $600 worth of products.
So I guess I don't have a problem with businesses who work selling products like the example above that they pay taxes on the income they are earning. What's the problem, unless of course, you disagree with income taxes in general.
Why should someone who works in a regular job with reportable income done legally have to pay taxes, but the person who has a home-based business earning $70,000 a year selling items or services to individuals and using an app for payment be exempt from paying taxes? The cutoff has just been lowered from $20,000 annually or 200 transactions, to $600 with no limit on transactions. The person that sold 100 masks last year on Etsy will now have to report that income.
So I guess I don't have a problem with businesses who work selling products like the example above that they pay taxes on the income they are earning. What's the problem, unless of course, you disagree with income taxes in general.
Why should someone who works in a regular job with reportable income done legally have to pay taxes, but the person who has a home-based business earning $70,000 a year selling items or services to individuals and using an app for payment be exempt from paying taxes? The cutoff has just been lowered from $20,000 annually or 200 transactions, to $600 with no limit on transactions. The person that sold 100 masks last year will now have to report that income.
Many people sell things that are lying around the house. With this new rule, I'd have to give my Social Security number to PayPal just so I can sell a few things lying around the house. I don't trust these tech companies enough to give them my Social Security number.
It's ridiculous and un-American. The presumption of guilt, until you prove yourself innocent.
Last edited by FordBronco1967; 01-07-2022 at 06:10 PM..
Thread is a failed attempt to throw shade at Biden. As someone who has sold online and kept up with changes, this was in the works years before the 2020 election and has nothing to do with it.
Thread is a failed attempt to throw shade at Biden. As someone who has sold online and kept up with changes, this was in the works years before the 2020 election and has nothing to do with it.
It was in the American "Rescue" Plan in March of 2021, in which the bill was signed into law by President Biden.
He may not have put it in the bill, but he signed it. Therefore, it is appropriate to "throw shade" at President Biden.
It was in the American "Rescue" Plan in March of 2021, in which the bill was signed into law by President Biden.
He may not have put it in the bill, but he signed it. Therefore, it is appropriate to "throw shade" at President Biden.
Because he is a commie scumbag.
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