IRS Warns Americans of New Law in 2023

[OrangeTsar]

Made money online this year? You could owe more in taxes

"Starting in 2023, more people who made money on eBay, Etsy, Poshmark, Uber or other digital platforms will have their income reported to the Internal Revenue Service. Anyone who made more than $600 via a gig platform or who was paid that much on Venmo will receive a 1099-K form, meaning that those funds will be reported to the IRS, the agency said.

Americans already receive 1099 forms if they make money as an independent contractor, if they earn interest on a bank savings account or if they make a significant sum by selling things online. What's new is the $600 threshold.

Before this year, people only received a 1099-K form if they earned at least $20,000 from online platforms and made more than 200 transactions on the platform. Now, a single transaction exceeding $600 can trigger a 1099-K reporting requirement, according too IRS. "



More: Just ONE offense reported by TicketMaster, PayPal, Cash App or Venmo, you get audited.




More:
IRS warns Americans about $600 threshold to report Venmo, Cash App payments


"Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.

Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes. Now, a single transaction over $600 will trigger the form. The change is intended to crack down on Americans evading taxes by not reporting the full extent of their gross income. However, critics say that it amounts to government overreach at its worst and that it could ultimately hurt small businesses."

I predict an upcoming surge in craft and home business storefront sites based in the Cayman Islands

 

[OrangeTsar]

Because you know what they will do. They'll be going after the honest people who made an error and hitting them because the IRS knows they can't fight back.

I am already planning to carefully photograph everything I donate to goodwill before claiming any deductions on them. The 87k new agents will be looking for people to go after

 

[85SugarVol]

I don't know if anything has changed or not over the years but in 2002 or 2003 when my wife was doing some consulting on the side she was paid a little over 10 grand by a company (one man shop), received it Jan or Feb and didn't get a 1099. She forgot about it and didn't tell me, when we filed taxes that money wasn't accounted for. 2-3 years later get a nice letter from the IRS letting us know we under-reported our income and by their good graces figured out how much in taxes we owed on that money and as long as we paid that along with interest (dating back to the date we filed) and a healthy penalty all would be forgiven. The honest mistake excuse wasn't accepted.

I’ve done that song and dance multiple times with our brothers and sisters from the IRS.

 

[85SugarVol]

Coming after the Waffle House waitresses now?

Have to almost respect the audacity of it all - We’re only coming after Billionaires….. and those min wage servers living off of tips!!

‘Next level cruelty’: Ted Cruz just slammed the IRS over its proposed tip reporting program — that could hike the taxes owed by certain workers. Here’s what it might mean for you

 

[hog88]

Coming after the Waffle House waitresses now?

Have to almost respect the audacity of it all - We’re only coming after Billionaires….. and those min wage servers living off of tips!!

‘Next level cruelty’: Ted Cruz just slammed the IRS over its proposed tip reporting program — that could hike the taxes owed by certain workers. Here’s what it might mean for you

It was always intended to go after the lower income levels.

 

[85SugarVol]

It was always intended to go after the lower income levels.

New $600 reporting requirements
New cash tips reporting scheme

And 87,000 new pairs of jackboots on the ground to shake down these tax dodging leeches of our great Society.

 

[hog88]

New $600 reporting requirements
New cash tips reporting scheme

And 87,000 new pairs of jackboots on the ground to shake down these tax dodging leeches of our great Society.

And not 1 member of congress or the administration will ever be audited.

 

[McDad]

And not 1 member of congress or the administration will ever be audited.

You really know how to push my buttons and get me riled up.

 

[WoodsmanVol]

Middle class beware the IRS will be coming after us with a vengeance. Much easier targets than the millionaires and billionaires because they can afford to fight.

Darn shame that you're right about this. A right rightist how 'bout that!
No wonder farmers and other little people applauded the likes of Pretty Boy Floyd who didn't just rob banks. He also destroyed the mortgage papers. Thus freeing many people of debt to greedy, over-charging bankers. Much like the IRS is doing now. Charles, baby, come back!

 

[OrangeTsar]

I don't know if anything has changed or not over the years but in 2002 or 2003 when my wife was doing some consulting on the side she was paid a little over 10 grand by a company (one man shop), received it Jan or Feb and didn't get a 1099. She forgot about it and didn't tell me, when we filed taxes that money wasn't accounted for. 2-3 years later get a nice letter from the IRS letting us know we under-reported our income and by their good graces figured out how much in taxes we owed on that money and as long as we paid that along with interest (dating back to the date we filed) and a healthy penalty all would be forgiven. The honest mistake excuse wasn't accepted.

That’s why we need to eliminate Income Tax and replace it with a national (reasonable) sales tax. It gets collected every transaction and can’t be avoided outside of the black market. 100% collection efficiency, no record keeping by the consumer. Everyone pays their fair share because even billionaires buy stuff.

 

[SpaceCoastVol]

Darn shame that you're right about this. A right rightist how 'bout that!
No wonder farmers and other little people applauded the likes of Pretty Boy Floyd who didn't just rob banks. He also destroyed the mortgage papers. Thus freeing many people of debt to greedy, over-charging bankers. Much like the IRS is doing now. Charles, baby, come back!

You voted for this because of you tender little feewings.