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

BobC · #1 12-23-2022, 06:54 PM

Quote:

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 · #2 12-23-2022, 09:47 PM

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 · #3 12-24-2022, 08:46 AM

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

Fred · #4 12-24-2022, 09:20 AM

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...

jamest206 · #5 12-24-2022, 02:51 PM

Thank God I flipped that Hunter B painting last week. Guess I am golden. Couldn�t resist.

x2drich2000 · #6 01-30-2023, 10:19 AM

Just thought I would post this so folks can be on the lookout. Just received a 1099-k from Ebay. I'm over the $600, but less than the previous $20k/200 transaction reporting limits so it looks like while Ebay is not required to send the 1099-k, they are still doing so anyway.

cgjackson222 · #7 01-30-2023, 10:41 AM

Quote:

Originally Posted by x2drich2000

Just thought I would post this so folks can be on the lookout. Just received a 1099-k from Ebay. I'm over the $600, but less than the previous $20k/200 transaction reporting limits so it looks like while Ebay is not required to send the 1099-k, they are still doing so anyway.

Similarly, I received a 1099K from Paypal last week. Oddly, it appears to include the Friends and Family payments I received last year.

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