IRS and $600

[ModelT46]

news report in the WSJ:
The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBay, Etsy and Airbnb to give the tax agency information on users with more than $600 in revenue.

[TRDxB2]

news report in the WSJ:
The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBay, Etsy and Airbnb to give the tax agency information on users with more than $600 in revenue.

Thank you for he update. https://www.forbes.com/sites/robertwood ... 31d99254fe
This is really good new in that the new Congress, starts Jan 3, will likely change the ridiculous threshold and that in part is why the IRS decided to delay a regulation that they know that they were unable to audit properly or at all. OR they are waiting to hire the 84,000 new IRS agents

[John kuehn]

Well at least hopefully it was put off for good. If this wasn’t big brother it was his little brother sneaking his way in.

[TRDxB2]

He promised he wouldn't raise taxes and he did say he would raise your personal income*.


*taxable

[speedytinc]

He promised he wouldn't raise taxes and he did say he would raise your personal income*.


*taxable

Soaring inflation wasnt mentioned. Oh, excuse me, the inflation index doesnt include food or fuel, so its still quite low.

[RVA23T]

The Fed Coin or which ever CBDC (Central Bank Digital Currency) the globalist put us on, must need a year to be complete. Then the pay processors will not have the burden of doing the reporting, the Fed will already know what we bought or sold, over under and equal to the $600.

When we are on the Fed$, the next needle set I want from Scott Conger, I'm going have to travel there and cut his grass in barter but then they will tax me for the extra travel expense. So inorder to barter we might have to develop a travel guide of T friendly places to stay. A "T-Black Book" perhaps?

[tdump]

I am hoping at least they will have some sense and raise it to a point it is not a issue for some of us.
I used to sell old stuff on ebay until about 2 years ago and I stopped because of the shipping issues I was having and didn't want my feedback dinged.But this 600 dollar thing was going to really make sure I stayed off.
Sometimes i sold maby 700 to a 1000 dollars a year total money coming in. and that was shipping added to it of course.and the reporting would have included shipping.so it would mean trying to be a book keeper or hire 1 for a small amount of money in relation to the big picture.
I hope it is changed for good.I feel like it was at a good place at 10K any way.
600$, that is kids lemonade stand money..

[Dan Hatch]

Maybe this will bring back swap meets?

[jamlip]

The really savage thing about reporting eBay income is that, for lots of people, this is money from the sale of secondhand goods. So the government has already collected sales tax on it... and now they want it again.

It doesn't make a lot of sense to me.

[Scott_Conger]

There are 614 billionaires in the US

There are 87,000 new IRS agents in the US, on top of what they had on the payroll last year... and a great many of those new agents are armed

the IRS has not geared up to force 614 billionaires to pay anyone more than they're paying right now

the IRS has indeed declared war on recalcitrant taxpayers

they just aren't the billionaires

[speedytinc]

They can find room in the budget for IRS brown shirts, but wont hire enough border patrol to keep out 2 million illegals just in the last 2 years. Could it be they are getting what they want?.

[mbowen]

It wouldn’t hurt my feelings if the moderators move this to OT - Off Topic…

[Dan Hatch]

Maybe this will help bring back Model T stuff to swap meets. Now is it on topic?

[John kuehn]

Absolutely on topic!

[Rod]

Someone should let Ticketmaster know that this rule has been suspended. I just sold 2 season tickets for the Monday night Colts game. After the sale was completed they sent me an email saying in order for me to receive the funds from them, I would need to complete their IRS form, including my SSN. They will then send a notice to the IRS stating that I received an income from the sale, even though I sold the tickets for less than I paid for them. Ticketmaster can keep my money. It is the last time I ever sell my tickets through their service. They won’t get my SSN or future business!

[TXGOAT2]

Police state.

[Model T Ron]

Gentlemen

They are from the government.....surly all they are hear for is to help us lol......sadly I wish that was true

[John kuehn]

Say it ain’t so Joe. But Joe ain’t listening. But it’s all another day as usual on the border.

[TRDxB2]

Someone should let Ticketmaster know that this rule has been suspended. I just sold 2 season tickets for the Monday night Colts game. After the sale was completed they sent me an email saying in order for me to receive the funds from them, I would need to complete their IRS form, including my SSN. They will then send a notice to the IRS stating that I received an income from the sale, even though I sold the tickets for less than I paid for them. Ticketmaster can keep my money. It is the last time I ever sell my tickets through their service. They won’t get my SSN or future business!

When I got the request from eBay for my SSN - I froze my credit of Equifax, Experian and TransUnion and then sent my SSN to eBay. If your not planning to get a credit card, mortgage , buy a car, or anything thing that you need to apply or credit on its not a bad idea. in Today's scam world. Each is free to do/review 1 time a year (freeze or check your credit score).

[speedytinc]

Why not send a fake #. I have had various parties "insist" on SSN's. I NEVER give that out. One was an insistent dental practice. After a short argument, I gave all 0's. take it or leave it. They took it. I guess the bureaucracy got satisfied enough.
A more recent experience @ a harley dealer. I refused to give the #. The dealer claimed it was needed for running a credit check. I told them I would be paying cash. They finally reluctantly shut up about it.

[TRDxB2]

Why not send a fake #. I have had various parties "insist" on SSN's. I NEVER give that out. One was an insistent dental practice. After a short argument, I gave all 0's. take it or leave it. They took it. I guess the bureaucracy got satisfied enough.
A more recent experience @ a harley dealer. I refused to give the #. The dealer claimed it was needed for running a credit check. I told them I would be paying cash. They finally reluctantly shut up about it.

You are 100% correct in not releasing your SSN in those circumstances. In the past the SSN was used by many companies etc as the unique ID for retaining a customers records name & address etc. This link, has history and is a good source for who needs it and when. https://www.ssa.gov/history/reports/ssnreportc2.html
As far as needing to provide it for tax information - if you expect to receive funds back and provide your name & address but a false SSN - that's Tax evasion and a normal computer audit being executed will catch it. In Today's world the tracking numbers are, your phone number(s) and your user-id's. and its fairly easy to relate these together and every things else about them. That's what made AMAZON (Google, Walmart, eBay, Etsy, Facebook, and most apps on your cell phone etc) what they are Today. What has made all this even easier is what they call Cloud computing. Years ago many corporations had their own computer centers, security issues , storage costs etc, and most significantly the Internet made it possibly to outsource their "computer center" lock stock an barrel to companies like aws, Amazon Web Services. Even MTFCA is being hosted by an external "service provider". For MTFCA it is the best world for us and the many others being serviced by them. The company has the staff & continually upgrades hardware, application and security software etc at an expense level that MTFCA could not begin afford.

[tdump]

Ebay just emailed me this for what it may be worth. Sure would be good if the limit was raised back up to something sensible instead of meddling in kids lemonade stand funds.


December 23, 2022

eBay is pleased to report that the Internal Revenue Service has announced a one-year delay of the new $600 tax reporting threshold. As a result of this delay, which follows over a year of eBay Government Relations advocacy on behalf of the eBay community, only sellers who: 1) exceed the previous threshold of $20,000 and 200 transactions, 2) that were subject to backup withholding or, 3) whose states of residence have a lower reporting threshold will receive a Form 1099-K.

"The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan," said Acting IRS Commissioner Doug O'Donnell. "To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements."

The American Rescue Plan of 2021 changed the 1099-K reporting threshold from $20,000 and 200 transactions down to just $600 and a single transaction. This lower threshold would force millions of Forms 1099-K to be issued to casual sellers of used personal goods, the sale of which generally does not generate taxable income.

The eBay Government Relations team would like to thank all of the members of our Main Street community who made their voice heard on this important issue. While a one year delay is welcome news for millions of online sellers, Congress will need to permanently change the reporting requirements to prevent mass confusion and overreporting of income in the future. eBay will continue its work toward a permanent solution on behalf of the online selling community. 

More information on 1099-K reporting for eBay sellers can be found here. Additional guidance for sellers related to the delay will be provided when available. 
US 1099-K Federal Tax Reporting Burdens on Casual Sellers

[TRDxB2]

To be clear - all the above means is that you don't need to file the 1099-K from eBay etc if under $20,000 for goods sold in 2022. BUT the $600 Tax rule is in effect for 2023. The 1 year delay is for filing a 1099-K on your tax return.
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"This lower threshold would force millions of Forms 1099-K to be issued to casual sellers of used personal goods, the sale of which generally does not generate taxable income." This is only true if you have you have a receipt for the price of the sold item when audited. The catch here is in the difference in reporting the 1099-K as Personal Income vs Business Income - more confusion....
from https://crsreports.congress.gov/product/pdf/IF/IF12095
Taxpayer confusion related to Section 6050W reporting may affect IRS enforcement resources. Currently, for individual taxpayers, the amounts reported on Form 1099-K are frequently reported on Schedule C (Profit or Loss from Business, Sole Proprietorship). The taxpayer from the example above, who sold used furniture for a loss, may report the transaction using Schedule C. This would result in a loss of $100, which would reduce the taxpayer’s income. However, this would likely be disallowed by the IRS under IRC §183 and related regulations (sometimes called the hobby loss rule), which prevents deductions for activities not done for profit. The taxpayer’s primary reason for selling the used furniture was likely to get rid of it and receive some amount of money for doing so, not to engage in a business for profit. Identifying and adjusting tax returns with losses like this would require IRS resources and may delay processing of those taxpayers’ return
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Also when the $600 Tax Law was being discussed in Congress, bipartisan team tried to raise the limit to $5,000 - and as usual - no compromise - no change. Why the hoped to raise $9 Billion ifrom it