Venmo, PayPal and Cash App will now have to report transactions totaling more than $600 to the IRS as Biden plans to ramp up financial enforcement
https://www.dailymail.co.uk/news/art...g-600-IRS.html
Ticketmaster is also sending me a form 1099-K for my Lakers Tickets I sell on their app as well.
No wonder Walter has "died" and gone, this is indefensible for Biden.
I'm thinking this could potentially affect some folks here... make sure you classify your transactions appropriately.
https://www.yahoo.com/now/venmo-payp...201237002.htmlAs of Jan. 1, mobile payment apps like Venmo, PayPal, Zelle and Cash App are required to report commercial transactions totaling more than $600 per year to the Internal Revenue Service.
The change to the tax code was signed into law as part of the American Rescue Plan Act, the Covid-19 response bill passed in March.
Previously, these mobile payment apps only had to tell the tax authorities when a person had over 200 commercial transactions per year that exceeded $20,000 in total value, the IRS said.
Starting Jan. 1, the IRS said, if a person accrues more than $600 annually in commercial payments on an app like Venmo, then Venmo “must file and furnish a Form 1099-K” for them — reporting on all the commercial income they collected through the app.
The tax-reporting change only applies to charges for commercial goods or services, not personal charges to friends and family, like splitting a dinner bill.
In an explanatory document on the new tax changes, the IRS said these changes also apply to people who sell items on internet auction sites like eBay and people who "have a holiday craft business" so long as they accept credit card payments through these apps.
PayPal said both "PayPal and Venmo offer a way for customers to tag their peer-to-peer (P2P) transactions as either personal/friends and family or goods and services by choosing the appropriate category for each transaction."
"Users should select Goods and Services whenever they are sending money to another user to purchase an item, like a couch from a local ad listing or concert tickets, or paying for a service," PayPal said.
This gives the public an adjustment period before release of the Central Bank Digital Dollar (CBDC).
By the release of CBDC any of your privacy concerns will be all but forgotten.
The irony is people brought this up online and everybody shit on it saying it wouldn’t come to pass. Once again the lemmings buried their heads and this is what we get as a result. I’m gonna take a stab now that this is gonna seriously put a crimp in anything like underground poker games and bookies who use these apps now to run their rackets. The now deceased Fox Poker used them a lot for deposits and withdrawals as I recall and the apps get used a ton to settle shit up and not just friends splitting bills.Originally Posted by khalwat
Once again the govt claims they’re only after tax revenue from the rich and yet they fuck the little guys for crumbs and make tax compliance a bitch and potentially a nightmare for even the local teenage babysitter who makes just enough to suddenly have to file a fucking tax return and declare that small amount for example.
FJB!! Fuck the Dems. They just proved once again they really aren’t for the little guy as they claim and it’s all bullshyt. Meanwhile they keep trying to squeeze cash transactions out (anybody been to Target or Walmart has seen the whole no cash transactions bullshit on their self checkouts claiming a bogus coin shortage. While it was a legit issue before it no longer is and hasn’t been and is more crap to control the masses so they can spy on every little thing you do and spend money on to squeeze the avg folks for as much as they can taxwise and shit).
www.jokerstarspoker.com / www.jokerstarspoker.net / www.jokerstarspoker.eu
www.jokerstarspoker.club (not your mommas chinese poker app)
Yeah this PayPal thing is terrible. If I sell WSOP pieces this year, I might have to keep them all under $600 for this reason.
But it's much worse for those in the poker/gambling community who routinely trade a few thousand bucks with other gamblers for whatever reason (prop bets, buying/selling crypto, trading poker chips needed/desired, etc). Now it's going to induce a report to the IRS.
LOL oppressive gubbmint
In theory, if you are marking them as personal transactions (PayPal has a way to do that when sending money) then they should be exempt from this... but yeah, it's a little dicey.
I think you mean to say “keep THE TOTAL FOR ALL I SELL under $600”. Right?
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Yeah I read it more carefully and I see that.In theory, if you are marking them as personal transactions (PayPal has a way to do that when sending money) then they should be exempt from this... but yeah, it's a little dicey.
However, I'm afraid Paypal and other services will start sending their infamous bots to look for circumvention of this requirement, and start submitting suspicious activity reports to the IRS anyway.
In any case, the $600 threshhold for a year is a complete joke.
Just wait. Another app will pop up that wont give a shit about this rule and well be good again
In similar news the last few times I went to the casino I cashed out (less than I bought in unfortunately) and they required me to scan my card to cash out. And this was all relatively small amounts. Pretty sure every time was under $2k. It definitely is going to be amusing if/when I get some IRS bill that adds up all my cashouts as "winnings" and taxes me on them when I most likely will have a losing year.
Of course this will pale in comparison to the trouble I will be in domestically if my significant other sees a casino IRS receipt and realizes I go to the casino much more than she is aware.
This won't happen. The card scan requirements are part of stricter measures aimed at casinos doing a better job catching "structuring" -- the act of cashing out more than $10k without filling out a CTR form, by breaking it into smaller parts.
Commerce was notoriously lax regarding keeping track of this, not asking a single quesiton or scanning anything, as long as the cashout was under $10k. Eventualy they were pressured by the feds to change that policy, and started asking for the card over a relatively small cashout. This changed a few years ago.
The casino internally tracks this, and then reports it to the IRS if your cashouts add up to more than $10k in a relatively short period of time (not sure what that time frame is). Otherwise, they say nothing.
To my knowledge, casinos haven't been instructed to notify the IRS otherwise, unless they suspect suspicious activity. However, it wouldn't surprise me if this changed soon.
And yes, wives/husbands finding out the true extent of their spouse's gambling is an unfortunate potential side effect here.
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