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Originally Posted by BobC
Remember, the reporting is only for commercial sales activity, so Paypal Friends & Family payments are NOT included in what will be reported. Not sure if any of the other payment platforms have a similar type of personal payment option, but if it seems maybe so, you can contact them and ask if such payments are included in this new 1099-K threshold reporting mandate or not.
However, be advised these payment platforms are not stupid, and monitor and keep record of all payments through them, including friends and family ones. So don't be surprised if they suddenly see someone incurring ongoing transactions and activity for thousands or tens of thousands of dollars using their friends and family option, especially when there was no such previous F&F activity or history before, and investigating it themselves, or reporting it to the pertinent authorities (like the IRS). They certainly aren't going to take a hit for someone using their payment platform and trying to get around the tax laws. Remember the old saying, pigs go to market, but hogs get slaughtered.
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Regardless of the payment platform, anyone not accurately reporting their sales in previous years has been committing tax fraud. I have zero sympathy for anyone whining about changes to tax form policy - the existence of these forms and/or the monetary limits do not preclude the fact that you should have been reporting your sales all along. Your gravy train just ran out of steam. Boo Hoo