All electronic funds transferred over $600.00 will be sent a 1099K from the bank.

Not sure if the "funds" will receive it...

My son's a CPA - I'll ask him about it..

Funds like PayPal, cash app and the like? Deposits to my bank account won't apply?

Please clarify. Or post link to what you are describing.

It is for third party payment apps like PayPal, Venmo, etc... and only if you are selling goods or services. Private transfers to individuals are not impacted.

The Guardian has a short understandable plain language article on this, sorry about not knowing how to link.

is this it?

https://www.theguardian.com/business/2022/jan/02/new-tax-rule-paypal-venmo-cash-app

Here's 1 short blurb about it:

Venmo, PayPal, Cash App Must Report Payments of $600 or More to the IRS
Tue, January 4, 2022, 12:19 PM

New year, new tax requirements. The Internal Revenue Service (IRS) is cracking down on payments received through third-party apps like Venmo, PayPal and Cash App to ensure those using these networks are paying their fair share of taxes. These platforms, coincidentally, also allow crypto purchases. "The Hash" crew discusses the issues of regulation, consumer privacy and impact on small businesses.

Here is a fairly good break down...


New 1099K reporting rules

My son said rule's been around forever - has to do with 'services' rendered and some corporate transactions... The IRS is mainly concerned with businesses like private contractors - and others that I can't remember now...

For example- the farm I work for part-time had to send a 1099 to a private citizen for cement work that was done at the farm.. The citizen is a union cement worker for a large company and occasionally does some weekend/side jobs for locals; like garage pouring/sidewalks etc...

Been around forever However the reporting rules and thresholds are changing.

https://www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements

Again, this is only for businesses or people that are accepting payments for goods and services that were required to report them in the first place. Which would be the case under a totally voluntary tax system. We are migrating from a voluntary tax system towards an involuntary tax system when you see information reported to the IRS with all the 1099s and lowered thresholds.

A little common sense goes a long way here. If the receiver gets a 1099 then the sender is probably listed on the form. Its all about controlling the public.

Cash is king!

Watch the camel's nose..

Bitcoin take off today?

Hiring more Govt. agents is bidenspeak for job creation.

GDP includes a bunch of government spending. It's a racket.

Please don’t inject these pesky facts. We’re on a righteous roll here.

So let’s say I sell my old “collector’s item” Honda motorcycle to Joe Sixpack. He pays me $1000 thru Pay Pal. You’re saying Pay Pal will then send me a 1099 on the $1000 received and that must be reported on my tax return?

If he sends it under goods and services, yes.
Friends and fam, no.

Could send two payments of 500

This ^^ The guys on ARFCOM have pretty much beat this up. The bottom line is, if you make more than $600 a year on any transfer you must report it on your taxes. The electronic money transfer companies are REQUIRED to report every transfer over $600. It also sounds like if you have a cumulative amount over $600 dollars per year everything after that must be reported by the electronic transfer company to the IRS. It' used to be $20,000. The republicans wanted it limited to $10,000 but the democrats made it $600. That is my understanding via the guys on ARFCOM.

Talk to your tax accountant for the final decision.

kwg

The PayPal rule is for cumulative payments in the course of a year received for Goods& Service; not single transactions. If you receive more than $600 in a year for G&S; you will get a 1099. The threshold was $20k AND 200 transactions.
Same will be applied to EBay sales; I believe

Hahaha!

True, as a self employed carpenter I sometimes get a 1099 for anything over $600 bucks , but it is always if I work for a company. I never got one from a private person. though. If that was law , it would be a pain. I just write an invoice , keep the copy and claim it at the end of the year, even cash. I will never get in trouble, cause I have more claimed than deposited cause I claim cash.

How does this affect things sold on Gunbroker if you get paid by a Money Order?
Gunbroker already collects sales tax from buyer.

Banks do the reporting. Get a bigger safe.

Has nothing to do with sales tax

Hilarious

Fat city's link explains it

A kid walking dogs gets to be a taxpayer if they can catch him. Their example of selling a 5000 train set for 8000 is backwards from what I do. And you better have all the receipts from year 1. Any proof that 1000 honda was sold for less than you paid? Sell grandpas old 94 on gunbroker and the 600 is taxable.

Proof once again the dems are for the little people

"to ensure those using these networks are paying their fair share of taxes"

Their fair share.

With the way .gov pisses tax money away there is nothing fair about "fair share".

I see my taxes paid are for value added necessary services rendered. Soooo much fraud and unnecessary services rendered by .gov is the pisser.

Actions like the new irs $600 threshold is how Brandon wants to finance bbb at no cost. Right.

ferfuksakes you must really be a rusky

Yes, if it goes through Goods and Services. You include the proceeds in your income and deduct the basis you have in the motorcycle. Nothing new, just expanded spying on the population so that people pay what the gov't says they owe.

Flood the system with paper work, then you can destroy the system.

AI computer systems will process it all. They’ll be a ton of mistakes to dispute that will all be processed in a dispute system that costs you more than the actual mistake. This is one more part of the destruction of the free market system that has produced the most wealthy country on earth. Bureaucracy grows and wealth declines.

I didn't realize that actually passed, I thought even Dems wanted it to be $10K limit.

YEPP... and don't forget to take those big fat deductions.

Sell a camper for $10k and owe tax... here is my $30k purchase receipt... "Thanks for the deduction Uncle Sugar... Wouldn't have thought about that until you reminded me".