IRS reminder: We want more of your money

**DRB** · November 20th, 2023, 09:32 AM

I don't use Venmo and have gotten rid of my PayPal account so it doesn't apply to me, but likely many others here. From the article:

A new Government Accountability Office (GAO) report shows that the Internal Revenue Service for the first time will be sending out 1099-K tax forms to about 30 million Americans for earnings paid through Venmo and PayPal.

House Ways and Means Chairman Jason Smith, R-Mo., responded: "Thanks to Democrats, more Americans who mow lawns or sell concert tickets and used couches through Venmo or PayPal will have those transactions scrutinized by the IRS starting in January 2024 thanks to a lower reporting threshold for IRS form 1099-K," read an analysis from Smith's office on Thursday.

"A new report from the GAO shows that the IRS will send at least 30 million new 1099-K tax forms to Americans’ mailboxes come January, even though the agency has no plan on what to do with the new information – and it is unlikely most Americans will understand how to fill them out," his office also said.

https://justthenews.com/government/c...arnings-thanks

**Walleye Hunter** · November 20th, 2023, 09:43 AM

**bogey1** · November 20th, 2023, 10:33 AM

Next years tax returns will show no earnings.

**esh21167** · November 20th, 2023, 10:49 AM

How many times can a dollar be taxed?

IRS answer: Just one more time...

**widgetman101** · November 20th, 2023, 10:52 AM

Does Venmo distinguish what a payment is being received for?

**father-of-five** · November 20th, 2023, 11:02 AM

$20,000 down to $600. Wow. I guess Democrats think they are impressing/fooling a few people by not making it $0.

**EFK** · November 20th, 2023, 11:17 AM

I still don't get the uproar. Seriously. I wish someone could explain it to me because anytime I've been paid through paypal - unless it was a legitimate gift from a family member, which of course is legal up to a fairly high point - I declared it as income because it IS income. If your business runs payments through a CC processor, do you get a pass from the IRS and not have to declare that income? I've always looked at Paypal as just another CC processor.

If you are selling something via ebay or elsewhere online, and you take payment through paypal, that's income isn't it? Of course you can itemize and depending on sale value, it can be listed as a capital gain or loss, and you can end up with more of a deduction because typically used shit that is sold is a loss. I know multiple folks selling things like vintage guitars, vintage firearms etc that they bought when the market was higher and then sold at a loss because a lot of collectible stuff is down. So frankly that can be a help if declared as a loss of investment. I'm no accountant though so maybe I'm missing somehting.

Before I get flamed, I'm not trying to defend the IRS. I just don't understand what people are bitching about, unless they were using Paypal or other online payments to hide income and now they're pissed that they can't do so. Is that what it is? Legitimate question. Nobody wants to give the IRS money, obviously, especially under this admin.

**sbmania** · November 20th, 2023, 11:32 AM

If your wife decides she doesn't like the couch anymore and buys another one, and you sell the old couch for $150, is that really income?? Now in a perfect world, you could find the receipt from when you originally bought the couch to show you paid $1500 for it at Macys 8 years ago, but does anyone really think they can find that original receipt? Or does anyone really want to spend the time rooting through their files looking for it? So now you get a 1099 from Paypal or Venmo for the couch and 15 other unwanted household items you got rid of last year and it becomes an exercise in paperwork to explain it all to uncle so that you don't have to pay taxes on the money for the tenth time.

It made a bit more sense when the cash flow to be reported was $20,000 because that starts to sound like a business maybe is being run. But $600?? I can spend more than that on dinner, wine and cigars on a good night! But guess what - government spending is going through the roof and SOMEBODY has to pay for all the money the gov is giving away. That somebody would be you and me. So prepare to get squeezed a little harder. It's for the immigrants, and Ukraine and all the other charities that the gov thinks we should support. So feel good about yourself. Really!

**widgetman101** · November 20th, 2023, 12:29 PM

Originally Posted by sbmania

If your wife decides she doesn't like the couch anymore and buys another one, and you sell the old couch for $150, is that really income?? Now in a perfect world, you could find the receipt from when you originally bought the couch to show you paid $1500 for it at Macys 8 years ago, but does anyone really think they can find that original receipt? Or does anyone really want to spend the time rooting through their files looking for it? So now you get a 1099 from Paypal or Venmo for the couch and 15 other unwanted household items you got rid of last year and it becomes an exercise in paperwork to explain it all to uncle so that you don't have to pay taxes on the money for the tenth time.

It made a bit more sense when the cash flow to be reported was $20,000 because that starts to sound like a business maybe is being run. But $600?? I can spend more than that on dinner, wine and cigars on a good night! But guess what - government spending is going through the roof and SOMEBODY has to pay for all the money the gov is giving away. That somebody would be you and me. So prepare to get squeezed a little harder. It's for the immigrants, and Ukraine and all the other charities that the gov thinks we should support. So feel good about yourself. Really!

You hit the nail on the head, I think $20k is a reasonable amount where it's likely "For Profit". There was another thread where I was bitching about the $600 limit, mainly eBay related. Every few years I liquidate a lot of my older electronics on there, I shouldn't be getting tax forms for old iPhones, iPads and other electronics I sold for 30-50% of the original value.

There are also a lot of people that use Venmo as it's super convenient to send people money quickly. For example I had sent a friend money who was organizing a group vacation. The amount alone was over $600, does that mean she's getting some stupid tax form over money I sent towards my share of a house rental?

**EFK** · November 20th, 2023, 01:09 PM

OK, I get it when it's put that way clearly. Unfortunately, being self employed my entire life and never wanting to deal with an audit, I have quite literally reported every freaking penny regardless of where it came from. I guess I may be a dufus for doing so.

And yeah, I also have probably 20+ years worth of receipts in boxes in the attic...