Quote:
Originally Posted by theshleps
With the new 1099-K issuing rules (starting 1/1/22) if you receive over $600 on PP, venmo etc in a given calendar year (as opposed to the former 200 sales + $20,000 income) the IRS will issue you a 1099-K and count it as income unless you can prove you took a loss. I make alittle bit yearly from sales. Don't need the money but like to get rid of dupes but the hassle and headaches this will cause will probably make me pull all stuff off ebay. I wonder how others feel about this
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This isn't new news. I'd mentioned this in posts months ago that touched on things like sales taxes. I got into it with another poster bitchin' about Ebay unfairly collecting sales tax on everyone now. He was claiming things like his wife selling a few things on Ebay every year, and how that was supposedly exempt from sales tax because she wasn't running a business and the sales were nominal. I explained how beginning in 2022, this new 1099-K threshold may suddenly get 1099s sent to her and make it look like she was running a business, albeit a nominal one, after all.
This new reporting threshold came out and was known early last year. There just wasn't a lot of talk and press about it back then. And what birdman42 is saying is right on the money. If you get one of these 1099-Ks and don't do anything about it, it isn't a question of if you'll hear from the IRS, it is only a matter of when you finally hear from them. And his other statements regarding crypto currencies are all correct as well. The government plans to make it as difficult as possible to hide any activity from them so they can't tax it.