Quote:
Originally Posted by bnorth
You guys are looking at this all wrong. This is a government program to get more business for those poor underpaid tax professionals. Just wait till you don't pay a tax professional a few thousand for that $125 of profit you made selling $1000 worth of old no longer wanted junk on eBay and get audited.
It is a win win for everyone.  |
No one will get audited for this. The IRS doesn't care about a few thousand dollars. What will happen is people will ignore the 1099-K and the IRS will just send out a bill for what you owe on taxes on the 1099-K without deductions considered. You can then amend your taxes, but that will be an absolute nightmare. This will be an automated process, especially with the insane amount of 1099-K forms from eBay, PayPal, Etsy, etc...
Now the people who should worry are the ones who skirted taxes who fell under the 200 transaction limits! It is just not $20,000 in sales, it is $20,000
AND 200 transactions! You could have sold $750,000 in cards on eBay and not have a 1099-K form. With this information now, the IRS will look at these big individual sellers that receive 1099-K forms in 2023 and could audit them. This could lead to some people facing big legal issues.
I can't wait until 2023! The 1099-K forms will be entertainment to me!