Big news: One-year reprieve on 1099 reporting for ebay etc.

[dbrown]

From the WSJ:

"The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBay, Etsy and Airbnb to give the tax agency information on users with more than $600 in revenue."

Sorry that's a paywalled source, I'm sure there's other coverage.

[bnorth]

Originally Posted by dbrown

From the WSJ:

"The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBay, Etsy and Airbnb to give the tax agency information on users with more than $600 in revenue."

Sorry that's a paywalled source, I'm sure there's other coverage.

That is complete BULL SHIP. Those A-Holes ruined my chances of finding new to my collection Wade Boggs bats for no reason. Because of this needed change many stopped listing on eBay and that made all of us suffer with less choices/listings.

[brianp-beme]

Originally Posted by bnorth

That is complete BULL SHIP. Those A-Holes ruined my chances of finding new to my collection Wade Boggs bats for no reason. Because of this needed change many stopped listing on eBay and that made all of us suffer with less choices/listings.

The supply/demand for Tony Gwynn bats has remained strong...

Brian

[bnorth]

Originally Posted by brianp-beme

The supply/demand for Tony Gwynn bats has remained strong...

Brian

LOL, I wouldn't know anything about that.

[Lucas00]

I mean, this basically had to happen.

There would've been hundreds of thousands of people who refuse to pay or straight up don't. Imagine the legal proceedings to that happening. It would basically be the people vs the government, and they definitely don't want that.

[swarmee]

Does the head of the IRS have the legal authority to ignore Federal Law? Since this clause was used to further spending, I'm not sure if anyone except Congress can amend the law. Coming soon to the Supreme Court?

[boysblue]

Will this trigger a slew of BINs between now and the new year?

[Lucas00]

Originally Posted by boysblue

Will this trigger a slew of BINs between now and the new year?

That would be cool to see.

[BobC]

Originally Posted by swarmee

Does the head of the IRS have the legal authority to ignore Federal Law? Since this clause was used to further spending, I'm not sure if anyone except Congress can amend the law. Coming soon to the Supreme Court?

The IRS is not ignoring the federal law, they are simply using their discretion to delay the implementation of it due to the situation and issues it creates for taxpayers, those having to prepare and report/file these 1099s, and the IRS' epic work backlog and shortage of people right now. People can criticize the IRS all they want, but the truth is they are simply doing the best job they can with what is being handed to them by the government, from politicians that typically don't really have a clue when it comes to taxes and what they are doing to people and the IRS when they pass legislation. And I am not saying or accusing you personally of criticizing the IRS, just speaking of some people in general.

Despite the recently enacted budget boost the IRS is to receive over the next 10 years, about half the federal government seem to have politicized that, with some having accused the IRS of being on the verge of going out to attack and harass the lower- and middle-class taxpayers of this country with scores of new auditors. Basically, all unfounded lies. This same half of the government to my understanding also recently pushed through a current year drop in IRS funding as a tack-on to another bill that needed to be passed. Typical government crap, and therefore, this coming current year is even going to be more underfunded and understaffed for a bit yet. Additional reasoning possibly behind the IRS decision to delay this new law's enactment. To throw this additional reporting burden onto the IRS, taxpayers, and everyone else involved right now, is just too much given the current economy and what is happening. It seems to me the IRS is simply trying to be as realistic and manage the situation they were dealt, as best as possible.

This change in the reporting laws was actually passed back in the Spring of 2021, so it is not like there wasn't ample advance warning and notification for people and businesses to have the necessary time to get ready for the new reporting threshold. I am thinking part of the reasoning behind the IRS postponement announcement is that they themselves aren't fully prepared and able to be as ready for this change and increased workload they're going to face from it either.

Regardless, the delay of the lowered reporting threshold does NOT absolve any taxpayer from reporting and paying their proper tax due on any net income/gain they had during this past year, simply because they don't get a 1099 sent to them. As noted in this accompanying CBS story, taxpayers are still supposed to report their income for tax purposes, whether they receive a 1099 or not.

https://currently.att.yahoo.com/fina...190100084.html

[BobC]

Originally Posted by Lucas00

I mean, this basically had to happen.

There would've been hundreds of thousands of people who refuse to pay or straight up don't. Imagine the legal proceedings to that happening. It would basically be the people vs the government, and they definitely don't want that.

There would not be a a ton of legal proceedings as a result. If taxpayers getting these 1099s simply refused to report them on their tax returns, or pay any tax resulting from them, the IRS simply assesses them the tax due based on what they know, which is only the amount reported to them on the 1099. It will be up to the taxpayer to report the gross income from the 1099s they receive, and then they can show the offsetting deductions and such to actually lower their taxable income/gain to the proper amount. It is the taxpayer's responsibility to properly report their taxable income to the IRS. The IRS doesn't have to take anyone to court to do this and to commence collection activities.

Meanwhile, taxpayers thinking they can take the IRS to court over this is a joke. Doing so would be the same as taxpayers taking the IRS to court over being required to pay taxes on the income reported on their W-2s. This isn't really about any new tax laws at all, just the requirement for third parties to report the results of taxpayer activities to the IRS for better enforcement. Any taxpayer taking the IRS/government to court over this is basically someone trying to cheat the system and not pay their taxes that are due. Remember, the law is that even without a 1099, the taxpayers are still required to report and have their net income/gain properly taxed.

[Orioles1954]

I sell about 30-40K a year on ebay. Certainly not a big seller but it's a nice side gig. I guess I just never got all this tax worry. Be honest. Report what you bought for inventory. Report what you sold. It all works out.

[Rich Klein]

https://mishtalk.com/economics/irs-p...-forms-in-2023

[Fred]

Call it economic evolution -

Government wants new revenue streams and now hobbyist, dealers and the like are going to find a new way to circumvent.

Now what?

When the price of a baseball card reaches a million bucks and people in government read about it, then the light bulb turns on. Probably also happens when law enforcement is called to resolve all these "collectible/memorabilia" issues of fraud. Just think, by taxing the crap out of everything for the collectible/memorabilia community, maybe they can actually start digging into some of these issues. Ok, probably not...