IRS Warns Americans of New Law in 2023

#76
#76
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.
Click to expand...
And if they are selling things they owned already, good chance their cost basis is more than what they sold it for, so no tax liability just the aggravation of having account for and report it.

Those operating as a business would most likely already be keeping their books properly. Doubt this is going to catch much, but could be wrong.
 
#77
#77
GroverCleveland said:
And if they are selling things they owned already, good chance their cost basis is more than what they sold it for, so no tax liability just the aggravation of having account for and report it.

Those operating as a business would most likely already be keeping their books properly. Doubt this is going to catch much, but could be wrong.
Click to expand...

It's just going to catch honest people making mistakes. Smart people trying to avoid taxes will just go cash only.
 
  • Like
Reactions: volinbham, LouderVol, GroverCleveland and 1 other person
#78
#78
BigOrangeMojo said:
Not reporting your business income isn't an honest mistake....
Click to expand...
Actually, have seen quite a few of those in my career. Pure ignorance of an arcane tax code and accounting principles. Like driving 55 in an 3 35 mph zone that is out in the middle of nowhere. No visual clues, didn't see the sign. Yeah, guilty of speeding, but not like they set out to speed.
 
  • Like
Reactions: AM64
#79
#79
GroverCleveland said:
And if they are selling things they owned already, good chance their cost basis is more than what they sold it for, so no tax liability just the aggravation of having account for and report it.

Those operating as a business would most likely already be keeping their books properly. Doubt this is going to catch much, but could be wrong.
Click to expand...

Makes you wonder how many people getting paid by clicks - like people putting up stuff on YouTube and the news sites that aren't news sites (and some other sites) - are paying taxes on that income. Supposedly some people are raking in a lot of money without being a business. I think the term in some arenas is "influencer" ... probably "performer" in some others.
 
  • Like
Reactions: Orangeburst
#80
#80
AM64 said:
Makes you wonder how many people getting paid by clicks - like people putting up stuff on YouTube and the news sites that aren't news sites (and some other sites) - are paying taxes on that income. Supposedly some people are raking in a lot of money without being a business. I think the term in some arenas is "influencer" ... probably "performer" in some others.
Click to expand...
One would think those big time "influencers" would be on the Govt. radar and paying their fair share.
 
  • Like
Reactions: AM64
#81
#81
AM64 said:
Makes you wonder how many people getting paid by clicks - like people putting up stuff on YouTube and the news sites that aren't news sites (and some other sites) - are paying taxes on that income. Supposedly some people are raking in a lot of money without being a business. I think the term in some arenas is "influencer" ... probably "performer" in some others.
Click to expand...
I imagine they're getting 1099s from YouTube/whoever.
 
  • Like
Reactions: AM64
#83
#83
AM64 said:
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.
Click to expand...
You might be on to something. The huge number of people that disappeared from the workforce is staggering. How are they surging financially?
 
  • Like
Reactions: Tnslim1, Orangeburst and AM64
#85
#85
UT_VOLS13 said:
One would think those big time "influencers" would be on the Govt. radar and paying their fair share.
Click to expand...
GroverCleveland said:
I imagine they're getting 1099s from YouTube/whoever.
Click to expand...

You'd think so, and presumably they would be independent contractors and have to pay both parts of SS, etc. You just don't hear anything about it - no complaining, so that makes you wonder.
 
  • Like
Reactions: GroverCleveland
#86
#86
AM64 said:
You'd think so, and presumably they would be independent contractors and have to pay both parts of SS, etc. You just don't hear anything about it - no complaining, so that makes you wonder.
Click to expand...

but wouldn't Youtube or whatever provider have to file 1099s since Youtube wants to deduct it as payments made to creators rather than eat the income tax on the revenue?
 
  • Like
Reactions: Tnslim1, hog88 and AM64
#87
#87
volinbham said:
but wouldn't Youtube or whatever provider have to file 1099s since Youtube wants to deduct it as payments made to creators rather than eat the income tax on the revenue?
Click to expand...

Sure makes sense that they would unless that particular industry has some way of writing off expenses that they'd have to include if they paid the people posting stuff. Which brings up a question about content on posts for clicks ... who exactly does make the payments and how deep do the layers go?
 
#88
#88
AM64 said:
Sure makes sense that they would unless that particular industry has some way of writing off expenses that they'd have to include if they paid the people posting stuff. Which brings up a question about content on posts for clicks ... who exactly does make the payments and how deep do the layers go?
Click to expand...

I assume that Youtube generates ad revenue (primarily) and data selling from successful creators. In return they pay them some cut of the revenue and would need to account for that cut to avoid paying taxes themselves on what is in effect cost of goods sold.

For a subscription site like OnlyFans I presume there's revenue sharing and the site likewise would need to show payment to creators.
 
  • Like
Reactions: AM64
#89
#89
AM64 said:
Sure makes sense that they would unless that particular industry has some way of writing off expenses that they'd have to include if they paid the people posting stuff. Which brings up a question about content on posts for clicks ... who exactly does make the payments and how deep do the layers go?
Click to expand...

If you are an influencer, couldnt you pretty much write off everything since your "life" is the product being sold.

I got the IRS to agree once that a strippers boob job was a business expense....
 
  • Like
Reactions: Tnslim1, Go aeiou, hog88 and 1 other person
#90
#90
Our over bloated tax code blows.
My Father is a founder of a CPA firm and 50 years ago he saved a client enough on loopholes that he made the gesture to send our family to Hawaii. Dad turned him down, but that was a childhood memory for me. The whole system is nothing but vagaries.
 
  • Like
Reactions: AM64
#93
#93
Sandman 423 said:
Won’t be long and they will do away with cash. Hell, they already treat you like a criminal when you deposit/withdraw modest amounts of cash.
Click to expand...

The Required Minimum Distributions from retirement accounts are one thing that drives me nuts. Had to make a couple of calls today to verify those are going as planned - two have been deposited in my bank account, one is a check on the way, and I still have to verify that the fourth one is done automatically. I even hate to think of what it's going to take this year to convince my wife the requirement to withdraw at least the RMD is a thing, and she has to deal with it. I've been putting that reminder off in hopes that she has followed through.
 
  • Like
Reactions: Sandman 423 and hog88
#96
#96
  • Like
Reactions: AM64 and Orangeburst
#97
#97
norrislakevol said:
SIAP, but McCarthy is supposedly going to cut out the budget for the 87,000 new IRS agents.
Click to expand...

The 87K is a right-wing scare tactic anyways. That's how many people they COULD hire if they did not invest a penny of the 80 billion in updating the systems to get them into the 21st century.

So, no, there won't be 87K net new agents out there and likely won't even be half that....
 
#98
#98
  • Like
Reactions: AM64 and rekinhavoc
#100
#100
BigOrangeMojo said:
The 87K is a right-wing scare tactic anyways. That's how many people they COULD hire if they did not invest a penny of the 80 billion in updating the systems to get them into the 21st century.

So, no, there won't be 87K net new agents out there and likely won't even be half that....
Click to expand...

Fine, cut out the amount they want to hire.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top