IRS Warns Americans of New Law in 2023

#53
#53
hog88 said:
Yes it will. No paying your buddy using Venmo who does a side job for you on the weekend. Gonna have to be straight cash until they do away with that.
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I am thinking about my office. We do some in house sport betting,everything is 5 bucks. The "bookie" handles all the money, even though he doesnt play or win anything, through Venmo. Sounds like it's going to be a major pain in his backside because the payout in the end was over 600 dollars to the winner. And that was just college football.
 
#54
#54
LouderVol said:
I am thinking about my office. We do some in house sport betting,everything is 5 bucks. The "bookie" handles all the money, even though he doesnt play or win anything, through Venmo. Sounds like it's going to be a major pain in his backside because the payout in the end was over 600 dollars to the winner. And that was just college football.
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Former neighbor of mine is a project manager for a commercial heating and air firm. He does a lot of side work on heat and air systems to help take care of his autistic daughter, wife always paid him through Venmo. He'll have to go straight cash from now on or raise his prices because he'll be paying taxes on that money.
 
#55
#55
hog88 said:
Yes, yes I know this. You must be an accountant?

The rub comes with people who haven't needed to use an accountant due their transactions being a minimal part of their income will end up with penalties and interest over mistakes. Then it will snowball.
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I am kind of wondering about money that gets loaned out and paid back. For instance, I loan my teenage daughter money all year long. $50 here $100 there and she pays it all back. Are they going to attempt to impute income for transactions such as this?
 
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#56
#56
VolStrom said:
What this boils down to, is if you sell a used riding mower for say $1000 and get paid via PayPal or Venmo you're going to have to add that to your income and depending on your tax rate could cost you a few hundred dollars in additional taxes.
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Well it ain't income since presumably you sold it for less than you paid.
 
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#58
#58
hog88 said:
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.
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Taxes would be so much easier without wives. Mine believes in doing everything online - so no paper trail that I can access easily - I intercept any tax related stuff when I get the mail. So I ask about this or that, and get why do you need it. Because the IRS requires it ... we'll that's stupid ... And on it goes
 
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#60
#60
ClearwaterVol said:
I am kind of wondering about money that gets loaned out and paid back. For instance, I loan my teenage daughter money all year long. $50 here $100 there and she pays it all back. Are they going to attempt to impute income for transactions such as this?
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Good question.
 
#61
#61
ClearwaterVol said:
I am kind of wondering about money that gets loaned out and paid back. For instance, I loan my teenage daughter money all year long. $50 here $100 there and she pays it all back. Are they going to attempt to impute income for transactions such as this?
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That's one I have a real problem with. I loaned my son money when he bought a house, and then found out I had to charge interest and report the interest as income. The point is I never used the loan value to reduce my income or taxes, so why does it matter if it's an interest free loan. This was in no way a matter of passing money to a child to hide my income because I reported and paid tax on the money I loaned him.
 
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#62
#62
AM64 said:
Taxes would be so much easier without wives. Mine believes in doing everything online - so no paper trail that I can access easily - I intercept any tax related stuff when I get the mail. So I ask about this or that, and get why do you need it. Because the IRS requires it ... we'll that's stupid ... And on it goes
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That experience taught me and her a lesson. Records, records, records. Of course back then neither one of us really knew what the hell we were doing.
 
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#66
#66
BigOrangeMojo said:
Not reporting your business income isn't an honest mistake....
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People use paypal, venmo etc. for other than business transactions. What happens when you buy concert tickets for you and 5 of your friends and you pay for them all up front to get the seating together and they send you paypal later to pay you back. Does that generate a 1099?
 
#67
#67
davethevol said:
The GOP needs to defund the IRS entirely. After they were weaponized under Obama and Lois Lerner, they never should have been allowed to continue. Make a national sales tax and let that be it.
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I’ve always thought that.. flat tax, luxury taxes, call it a day.. it’s all too convoluted
 
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#69
#69
jaybird_1981 said:
People use paypal, venmo etc. for other than business transactions. What happens when you buy concert tickets for you and 5 of your friends and you pay for them all up front to get the seating together and they send you paypal later to pay you back. Does that generate a 1099?
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Only if you click for "goods and services". Payments between friends wouldn't apply.
 
#70
#70
LadyVolette said:
I’ve always thought that.. flat tax, luxury taxes, call it a day.. it’s all too convoluted
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A flat tax would be a good idea but too many lobbyists are involved now to get it...

If you think taxes are complicated now for small businesses, you haven't seen a VAT/National Sales tax. If you don't like the amount of info the IRS sees now, just wait until a VAT is passed...
 
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#71
#71
LouderVol said:
I am thinking about my office. We do some in house sport betting,everything is 5 bucks. The "bookie" handles all the money, even though he doesnt play or win anything, through Venmo. Sounds like it's going to be a major pain in his backside because the payout in the end was over 600 dollars to the winner. And that was just college football.
Click to expand...

Payment between friends (although you technically should report that gambling income) won't trigger 1099 rules...
 
#72
#72
ClearwaterVol said:
I am kind of wondering about money that gets loaned out and paid back. For instance, I loan my teenage daughter money all year long. $50 here $100 there and she pays it all back. Are they going to attempt to impute income for transactions such as this?
Click to expand...

Payment between friends isn't part of new rules, only payment for goods and services...
 
#73
#73
hog88 said:
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.
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Five divisions of troops, I mean 87,000 IRS agents, have to have something to do.
 
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#74
#74
LadyVolette said:
I’ve always thought that.. flat tax, luxury taxes, call it a day.. it’s all too convoluted
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I'm beginning to think that somebody in DC is seeing that some numbers don't add up. Non participation in the workforce is high and the "unemployment" numbers are low. If nobody's starving, none of that adds up. The two obvious possibilities are that there is an untaxed flourishing underground economy, and government handouts are competing with jobs. This looks like an attempt to clamp down on what has been a tax free alternate economy, and unfortunately it makes life harder for some average people in the process.
 
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