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If You Dread the IRS Now, Wait Until You Get a 1099-K
WSJ ^ | March 31, 2022 | Ryan Ellis

Posted on 04/02/2022 11:26:17 AM PDT by george76

In the best of times, the Internal Revenue Service is tough to deal with, and tax season is never fun. But the past few years have seen the IRS lurch from one crisis to another. And things are about to get much worse for millions of taxpayers.

In 2021 Congress expanded the reporting requirements of the obscure Form 1099-K. This information-reporting form tracks business transactions done with a credit or debit card or such peer-to-peer services as Venmo and Paypal.

Prior to the change, taxpayers received a 1099-K only if they processed more than 200 business transactions, amounting to more than $20,000, in the course of a year. Congress removed the transaction threshold and lowered the payment threshold to $600.

As a result, millions of taxpayers who have never seen a Form 1099-K will be receiving them. While no one knows how many Americans will be getting these forms, tax lobbyists estimate the number at as high as 20 million.

This won’t happen until next tax season, but card processors and peer-to-peer networks are already collecting information on their customers for the IRS—an incredible breach of privacy. Congress rushed this provision into law as part of the American Rescue Plan Act of 2021, and it was never vetted in tax and accounting communities.

The biggest issue is that millions of Americans won’t see this coming. They’ve never received a 1099-K and won’t know what to do with it. While the lower reporting thresholds were meant to bring full-time Uber drivers and serial Airbnb landlords into compliance, the net was cast too wide. ... . Imagine using your Paypal account to facilitate paying for a vacation, only to get a tax form in the mail.

(Excerpt) Read more at wsj.com ...


TOPICS: Crime/Corruption; Government; News/Current Events; Politics/Elections; US: District of Columbia
KEYWORDS: 1099k; airbnb; airbnblandlords; banks; bidenmustgo; cardprocessors; creditcard; debitcard; demagogicparty; ebay; fourthamendment; gigeconomy; irs; paypal; peertopeernetworks; peertopeerservices; suetheirs; tax; taxes; taxnotices; taxpayers; uber; uberdrivers; venmo
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1 posted on 04/02/2022 11:26:17 AM PDT by george76
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To: george76

“Congress removed the transaction threshold and lowered the payment threshold to $600.”

I thought this ridiculous $600 reporting limit was abandoned due to public outcry.


2 posted on 04/02/2022 11:28:56 AM PDT by ProtectOurFreedom (“Sorry, I’m not a biologist.”)
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To: george76

I still remember the gleeful reporting after Ducey approved the tax on internet transactions. “State coffers filling up with new cash.” The media absolutely has an orgasm when we get socked. They tax us when we make it and tax us when we spend it.


3 posted on 04/02/2022 11:29:13 AM PDT by Luke21
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To: george76

They think technology is a substitute for law abiding citizens.


4 posted on 04/02/2022 11:29:17 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: ProtectOurFreedom

Last year the proposal to have banks report aggregate deposits and withdrawals over $600 on 1099-INTs was rejected by the public and Congress.


5 posted on 04/02/2022 11:32:36 AM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

“Imagine using your Paypal account to facilitate paying for a vacation, only to get a tax form in the mail.”

I don’t get this line - that’s not a business to business transaction. That’s a personal purchase.

Unless they’re saying you’re going to get one for venmo’ing someone to split a hotel stay and then you should be able to defend that as such (no other large transactions) though I’m sure it’ll sucker in a buncha people to pay extra taxes they shouldn’t need to.


6 posted on 04/02/2022 11:34:20 AM PDT by Skywise
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To: george76

So they back doored it in under Venmo and Zelle which is what all the millenials use to transfer cash instead of check or actual cash.


7 posted on 04/02/2022 11:35:14 AM PDT by Skywise
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To: Luke21

They tax us when we make it and tax us when we spend it.

*************

And then torture us with an unintelligibly complex tax code.

It doesn’t pay to be a productive citizen anymore.


8 posted on 04/02/2022 11:35:24 AM PDT by Starboard
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To: Skywise

I’m sure it’ll sucker in a buncha people to pay extra taxes they shouldn’t need to.

************

Ahaa, you’re catching on now.


9 posted on 04/02/2022 11:37:39 AM PDT by Starboard
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To: Starboard

10 posted on 04/02/2022 11:39:25 AM PDT by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: george76

This is another thing about the Biden criminal occupation I forgot about, IRS harassment. So besides record fuel costs, wide open borders, inflation, Russia invasion, 9000 Americans held hostage in Afghanistan and forgotten about, $85 billion in weapons and tech left to the Taliban, trans freaks shoved down our throats every second, open pedo season on toddlers in Kindergarten, we also got the IRS breathing down out backs. All in a little over a year.

Yep, this is SO much better than excessive Tweeting. And still the Rat/RINOs bash and harass Trump more than Biden


11 posted on 04/02/2022 11:39:29 AM PDT by GrandJediMasterYoda (As long as Hillary Clinton remains free, the USA will never have equal justice under the law)
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To: george76

https://www.irs.gov/businesses/understanding-your-form-1099-k


12 posted on 04/02/2022 11:40:02 AM PDT by EBH (Hold My Beer. 1776-2021 May God Save Us.)
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To: Skywise

Yes.. for your convenience.. /s


13 posted on 04/02/2022 11:40:36 AM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
NBD!
Our communist masters know that the Aamerican sheeple will just continue to roll over and spread their collective cheeks...

Bow down!... Obey!... Snitch!...
Get used to it or do something significant about it...

14 posted on 04/02/2022 11:41:48 AM PDT by SuperLuminal (Where is another Sam Adams now that we desperately need him?)
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To: Starboard
It doesn’t pay to be a productive citizen anymore.

You can change that. Be productive, and be a citizen, but switch to being a productive Sovereign Citizen.

Sovereign Citizens do not pay direct taxes, neither to the IRS, nor to their town/city in Real Estate taxes.

15 posted on 04/02/2022 11:42:17 AM PDT by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: george76

Is this a tax on cash taken out of bank accounts? Or, is this a tax on credit card payments?


16 posted on 04/02/2022 11:42:38 AM PDT by Gen.Blather (Wait! I said that out loud. Sorry.)
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To: Gen.Blather

This information-reporting form tracks business transactions done with a credit or debit card or such peer-to-peer services as Venmo and Paypal.


17 posted on 04/02/2022 11:43:59 AM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

For clarification, here’s what TurboTax says about form 1099-K:
“This form endeavors to ensure that all online retailers are reporting sales for tax purposes. It requires credit card companies, such as MasterCard and Visa, and third-party processors, such as PayPal and Amazon, to report the payment transactions they process on behalf of retailers.”


18 posted on 04/02/2022 11:44:11 AM PDT by Restless
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To: george76

This is if you RECEIVE more than $600 in payments from PayPal, not PURCHASE more than $600 of merchandise, right?


19 posted on 04/02/2022 11:44:24 AM PDT by E. Pluribus Unum (Depopulate the depopulationists. --FJB)
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To: ProtectOurFreedom
I thought this ridiculous $600 reporting limit was abandoned due to public outcry.

The SWAMP appears to love the $600 figure. What you are remembering is the previous "Big Brother" attempt to monitor every bank account, world-wide, possessed by US Citizens, Green Card & legal residents.

The initial proposal was a required reporting to the IRS/US Treasury of ALL TRANSACTIONS, within the calendar year, once the dollar value of account transactions exceeded that magic $600. The Biden Administration and Congressional Democrats were all in favor until they felt the SHTF. At first they tried raising the limit but then withdrew it up as too soon for the SHEEPLE! Do they still want it? ... What do you think!

20 posted on 04/02/2022 11:45:55 AM PDT by SES1066 (More & more it looks like Brandon's best decision was Kamala! UGH!)
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