delete

[megalimey]

deleted

[Cliff Bowman]

Originally Posted by megalimey

forget big corporations lets go after the little guy easier to push around

The "little guy" doesn't donate millions of dollars to the current "big guy" like the big corporations.

[earlywynnfan]

Originally Posted by Cliff Bowman

The "little guy" doesn't donate millions of dollars to the current "big guy" like the big corporations.

Or the most recent "big guy." Or any "big guys."

[BobC]

Originally Posted by megalimey

tax man coming after ebay sellers of more than $600 in a year
forget big corporations lets go after the little guy easier to push around
see link

https://money.yahoo.com/irs-cracking...173850504.html

This has been known since this past Spring, and I'd mentioned it in posts at least a couple times over on the main board already. Oddly, it didn't seem to cause much conversation or comment when I did. And I don't believe this is just relevant to Ebay sales alone either. It is changing the current threshhold for third party reporting of online and related types of sales from having a minimum of at least $20,000 in sales AND at least 200 total sales before reporting was required via form 1099-K. Going forward the only threshhold will be that total annual sales reach at least $600, regardless of how many sales transactions one actually has.

And why do you say this is pushing and going after the little guy, and making it sound like something unfair is being done? There never was any de minimis sales amount which people operating and selling as a business could stay below and not still be required to report on their taxes. Most people just never reported it because they knew the IRS didn't know about their sales and business otherwise. It is like all the people who bitch and moan about how Ebay and more AHs now collect sales tax on purchases that in prior years wasn't being charged and collected from them. Truth is, pretty much every state with a sales tax also has what is known as a use tax. The use tax is the amount a buyer who didn't get charged sales tax is supposed to voluntarily pay to their state anyway. Thing is, pretty much no one was doing it and therefore cheating their states out of the sales tax due them.

No one is really getting pushed around, and the biggest and loudest complainers are typically those that want to cheat and not pay their taxes that are due, sales, income or otherwise.

[BobC]

Interesting that the OP went back to delete his entire opening post and thread title. He obviously missed that whatever he posted would still show up in anyone's thread that quoted him. So now I'm really curious why he wanted to delete it.......

[bnorth]

Originally Posted by BobC

Interesting that the OP went back to delete his entire opening post and thread title. He obviously missed that whatever he posted would still show up in anyone's thread that quoted him. So now I'm really curious why he wanted to delete it.......

I am guessing the last line in your previous post.

[BobC]

Originally Posted by bnorth

I am guessing the last line in your previous post.

LOL

You may have point there. The last thing someone not doing things in accordance with the law should be doing is posting about it online on a public forum. That's also why I mentioned him possibly not realizing that when his post gets quoted by someone else in the thread that he can't delete it then.

And what I said in that last line is pretty much true. Just go back and find some of those threads on here talking about sales taxes when Ebay started collecting it on everything, or as more and more auction AHs were forced to start collecting it in more and more states. There always seemed to be a few posters hemming and hawing about how and why they shouldn't be paying sales tax now because they didn't have to pay it before. I'm sure none of them liked me informing them that they had been breaking their state sales tax laws by not paying in the use tax they owed.

And a similar thing may start happening now that the reporting threshhold for having online sales is dropping to just $600. So anyone just casually running a few sales through Ebay, or maybe through their own site where they take payment through some service like Paypal - Goods & Services, may now start getting a 1099-K form reporting those sales as income. And copies of those 1099-K forms will also all be going to the IRS, who will match every single one of them back to the tax return of the person or entity that the sales proceeds went to. And unless people/entities start including these reported gross taxable sales proceeds on their tax returns, and then deduct any eligible tax deductible expenses against those reported gross sales proceeds so they only end up paying income taxes on their net taxable income, the IRS will consider 100% of those reported 1099-K sales proceeds as their taxable income. And the IRS will likely consider that as subject to self-employment taxes also.

There are probably quite a few people, maybe a million plus, or even more, in the past that got away with never reporting and paying taxes on these small businesses they've actually been operating all along. Whether they really didn't know they were supposed to, or did know and simply chose to not follow the tax laws, it won't make a difference going forward as the IRS will now have this info in their system. I am merely mentioning it so people know what they may be looking forward to. For whatever reason, this new $600 reporting threshhold didn't make a big splash when it first got passed back in this past Spring. As we're getting closer to 2022, when this takes effect, seems people are finally picking up on this new law change and starting to pay attention to it.

As I've mentioned on this forum in the past, people who are into and collect/deal in sports cards and memorabilia can end up in any one (and possibly multiple) category(ies) as either what I have termed a dealer, investor, or collector. And depending on what category(ies) they may fall into, each one has seperate and distinct federal income tax consequences that come from sales of items that person has that fall under each of those categories.

Quite frankly, this new tax reporting rule is going to turn out to be a real pain in the arse for an awful lot of people.

[SAllen2556]

UH OH:

The Internal Revenue Service is hiring thousands of new auditors as it gears up for a potentially massive tax-enforcement push if Congress is able to pass an infrastructure plan that includes $40 billion to expand audits on the wealthy.

The IRS small business and criminal investigations divisions are adding thousands of new tax enforcement employees as the agency seeks to rebuild the roughly 17,000 audit staff lost in the past decade, officials said Friday.

The agency’s small business unit will add about 2,000 new workers, including 1,300 revenue agents, before the IRS’s fiscal year ends at the end of September, De Lon Harris, co-commissioner of the division, said at a tax conference at New York University. The criminal investigations division will add more than 500 people this year, with about half of those being special agents, said James Lee, who leads the criminal unit.