More Warnings For Paypal Users

[DougGuy]

Starting Jan 1 2022 Paypal will now send the IRS a 1099 for each user that receives more than $600 in goods and services throughout the year. BIG change from previous years where you could receive up to $13,000.00 and have 200 transactions.

They don't report money received if sent Friends & Family. You can send a happy birthday note, personal gift, etc. but if you don't consciously pick Friends & Family while you are clicking through the process of sending money, it is set to Goods & Services BY DEFAULT so that Paypal makes sure they get their 3% or whatever they get now.

Just a PSA for those who use Paypal...

[fixit]

That's the number biteme and crew threw out earlier for surveillance of finances.... welcome to the brave new world!

[MrWolf]

The $600 reporting amount has been around for a long time. PayPal probably got noise from the IRS about sellers in business not being sent 1099's properly. IRS is cracking down on hobbies vs business in an effort to collect unpaid taxes. Just my opinion but was a CPA for over 30 years.

[JWFilips]

Same with e-Bay!

[HATCH]

That is the reason I changed my payment methods.
Paypal collected $450 in transaction fees from me last year.
This year they will only collect $1.54 from me.
That is only because one guy sent me a refund via goods and services on something I had sent via friends and family.

[NyFirefighter357]

I'm glad On-line sales are being taxed. With many stores closing they are going to get tax money one way or the other. Pay your taxes, like the rest of us!

[HATCH]

Pay your taxes, like the rest of us!

LOL, this doesn't change ANYTHING.
Paypal is just a easy quick way for payment.
People will just go back to sending checks or money orders.

And speaking of that, is the USPS going to keep track of EVERYONE that cashes a USPS money order in their facility to see if they get more then $600 in payments a year??

[Mal Paso]

The $600 reporting amount has been around for a long time. PayPal probably got noise from the IRS about sellers in business not being sent 1099's properly. IRS is cracking down on hobbies vs business in an effort to collect unpaid taxes. Just my opinion but was a CPA for over 30 years.

That is what I think.

PayPal is a bargain compared to the bite Western Union used to put on sending your kid a few bucks.

[zymguy]

As I understood it IRS were looking in banking accounts , If that's the case doesn't really matter if it were western union , canadian copecs or PayPal

[fatelk]

I have no problem with businesses paying taxes; My problem with this is that there are a lot of hobbyists who buy/sell/trade not as a business and not for a profit. They might buy and sell car/motorcycle/gun parts and use Paypal. Now if they get over $600 in the course of a year (easy to do) they have another tax form to deal with. Better be careful to get and save all your receipts for any odds and ends you buy at gun shows or swap meets, or all those small transactions will get taxed as income.

[Plate plinker]

And with the stroke of a pen the underground economy just grew 10 fold.

Personal gripe here but why on earth do we have to pay tax on a item that has already been taxed?

[elmacgyver0]

And with the stroke of a pen the underground economy just grew 10 fold.

Personal gripe here but why on earth do we have to pay tax on a item that has already been taxed?

Because we are a bunch of saps.

[Scrounge]

Because we are a bunch of saps.

Bullseye!

[uscra112]

LOL, this doesn't change ANYTHING.
Paypal is just a easy quick way for payment.
People will just go back to sending checks or money orders.

Does eBay allow that again? I'd love it if they did. I stopped liquidating my motorcycle parts pile because of Paypal.

[Ithaca Gunner]

And with the stroke of a pen the underground economy just grew 10 fold.

Personal gripe here but why on earth do we have to pay tax on a item that has already been taxed?

I agree with both of those statements. That's about all I'm going to say.

[megasupermagnum]

The $600 reporting amount has been around for a long time. PayPal probably got noise from the IRS about sellers in business not being sent 1099's properly. IRS is cracking down on hobbies vs business in an effort to collect unpaid taxes. Just my opinion but was a CPA for over 30 years.

It couldn't have been around a long time, it just got written last year. It was a tag along on the Covid relief bill. IRS had nothing to do with it. No doubt it is to squeeze a little more money out of the common folk. Us big shots were just raking in the cash tax free out here selling our old stuff. Yep NYfirefighter357, I'm sure going to start filing taxes for those 30 year old bullet molds I sold. :rolleyes:

[15meter]

And I'm sure NY firefighter is going to report every dollar as taxable income from the garage sale.

For me this is not a business, I bought 4 pounds of powder and 6000 primers over the weekend. It's almost all resold to buddies that need the stuff at my cost.

Do I have to pay taxes on that? Or on the beer they bought me when we got together Sunday evening to deliver the stuff?

This rule is coming from an administration whose son is selling paintings for HOW MUCH?

Never mind, he'll pay taxes on that bribe, not like the criminals on here.

[MrWolf]

It couldn't have been around a long time, it just got written last year. It was a tag along on the Covid relief bill. IRS had nothing to do with it. No doubt it is to squeeze a little more money out of the common folk. Us big shots were just raking in the cash tax free out here selling our old stuff. Yep NYfirefighter357, I'm sure going to start filing taxes for those 30 year old bullet molds I sold. :rolleyes:

The $600 threshold for reporting for independent contractors has been around as far back as I can remember. I believe what you are referring to was the looking at personal bank accounts, etc. Looks like they want to expand the search to catch folks not declaring "side" money. Can probably still find instances on Google or whatever on State tax authorities going to flea markets and getting folks that way. IRS has been after cash businesses forever. Ask AL Capone. There are even rules on the books about bartering and fair values which are "supposed" to be reported, just like any transactions made out of state that you did not pay state sales taxes on. Still supposed to report and pay them every year.

[fixit]

What the high and mighty rulers from on high actually want is to tax funds EVERY TIME they charge hands, all the way to the level of husband to wife....we need to try to educate people around us on the fact that government does not produce.....it only takes, and is thus a burden on the economy. The fact that a substantial portion of our population believes in the myth of government money is appalling!

[savagetactical]

This was actually part of a larger legislation package that Joe Biden was pushing. He wanted to force banks to report the same, but he received so much push back from individuals and the financial industry , that the Democrats dropped it along with the push to fund the hiring of 80,000 IRS agents so they can conduct more audits . As Biden said people aren't paying their fair share and he wants your money so he can fund his social agenda.

See the article from last year

IRS would track all bank transactions over $600 under Biden plan; Businesses revolt (https://news.yahoo.com/irs-track-bank-transactions-over-140000522.html)


Starting Jan 1 2022 Paypal will now send the IRS a 1099 for each user that receives more than $600 in goods and services throughout the year. BIG change from previous years where you could receive up to $13,000.00 and have 200 transactions.

They don't report money received if sent Friends & Family. You can send a happy birthday note, personal gift, etc. but if you don't consciously pick Friends & Family while you are clicking through the process of sending money, it is set to Goods & Services BY DEFAULT so that Paypal makes sure they get their 3% or whatever they get now.

Just a PSA for those who use Paypal...

[drizler]

That's the number biteme and crew threw out earlier for surveillance of finances.... welcome to the brave new world!

Nothing brave about it. It’s nothing but another step towards Marxist totalitarianism from the current regime . That’s where they are heading as long as we let them. Remember that in November .


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[kerplode]

That is the reason I changed my payment methods.
Paypal collected $450 in transaction fees from me last year.
This year they will only collect $1.54 from me.
That is only because one guy sent me a refund via goods and services on something I had sent via friends and family.

Please be aware that if you send payment for goods using "Friends and Family", you will have no recourse from PYPL if the buyer stiffs you. You gifted them the money as far as PYPL is concerned, and expecting goods in return is a violation of their terms.

You do you, but I just want people to be aware that they are taking on additional risk by using F&F for purchases.

[jsizemore]

Hey Doug. The local news outfits around Raleigh reported any deposit or expenditure $600 or higher from your banking account was going to checked by the state and fed.

Mo' money for build back plans to pay for the next election. We just thought congress wasn't getting anything accomplished.

[JRLesan]

Easy solution: save your receipts so you have a cost basis for whatever you might sell...

[uscra112]

Yeah, like I've got receipts for Bultaco parts I bought in 1972.

[farmbif]

eBay and PayPal have been sending out 1099's and reporting to IRS for probably 14 years now. its nothing new. and those who like to throw out political terms might want to look up what exactly those terms mean. the way it works or so was told by a tax lawyer I hired about a dozen years back is they can send out all the notices to irs and such that they like but if your selling off your own personal property like on eBay, like an online yard sale or estate sale, you do not have to pay income tax on that. unless your buying stuff and selling as a business would do, or selling other peoples belongings to make a percentage of profit.
if you go online and have transactions and communications all of those things, these things, are being recorded, duplicated and probably scrutinized by some computer somewhere since the great build up of communications surveillance that began after 9-11. just the way things are in this country of ours regardless of who gets elected or where you live. and if your not aware the internet companies that you come in contact with in searching though the internet and reading and shopping and whatever are most likely tracking and recording your every click
and besides all that I think we all know of how the policies of PayPal seem to be against second amendment rights, why would you want to support them, use their services and give them money for those services , if there are other options.

[BrassMagnet]

I have no problem with businesses paying taxes; My problem with this is that there are a lot of hobbyists who buy/sell/trade not as a business and not for a profit. They might buy and sell car/motorcycle/gun parts and use Paypal. Now if they get over $600 in the course of a year (easy to do) they have another tax form to deal with. Better be careful to get and save all your receipts for any odds and ends you buy at gun shows or swap meets, or all those small transactions will get taxed as income.

I believe you need to actually review the tax code. Anything you sell as a hobby might be taxed on the full sale price and not on the amount over what you actually paid for it.

[elmacgyver0]

All I know is we're being screwed.

[Shawlerbrook]

Yes, the $600 reporting for payment apps like PayPal was in the American Rescue Act passed last year. In the Biden Build Back Better boondoggle it would require banks to do the same. Thank you Senators Manchin and Sinema !

[SSGOldfart]

Well it looks like YouTube is doing the same.[smilie=b:

[Jaaymar]

And with the stroke of a pen the underground economy just grew 10 fold.

Personal gripe here but why on earth do we have to pay tax on a item that has already been taxed?

Gold & silver are the only money recognized by the constitution (eg. The only money the government is to be dealing with).
Tax structure for the new country appears to have been intended to be:
The federal government taxes the states & settles up with the above mentioned metal.
The states tax the citizens, either income (bad idea because anything taxed is by default discouraged) or commerce (better idea because this encourages individual states to complete for a better economy than its neighbors).

What we have now is a financial system (read parasite) consuming the economy.
Financial systems feed on debt and because our currency is borrowed into existence from a private institution (the fed) there is too much food for the parasites to be had.

Taxes and the abuse of the economy by the system may be a distraction & an effort to control the out of control inflation.

This is why we are taxed going, coming & standing still. In an economy based on sound money this kind of theft would be too obvious to be hidden.

[Shawlerbrook]

Problem is simple. Government just keeps on growing and as such because of growth, gross incompetence and corruption, needs more and mor $$ to continue to operate and grow. It gets to a point where it smothers out the private sector and that’s when you have that Tea Party thing.

[anothernewb]

surefire way to drive commerce back to a barter system, or back to base metals and physical exchanges that do not involve any form of 3rd party, be it digital or other.

hard to hide income from employers who direct deposit though.
The tinfiol hat part of me is convinced that's what started this BS "coin shortage" making everyone use credit cards last year. know several people who work at banks and other money handling institutions and registers and they all said the same thing. "what shortage," almost as if the govt was falsely advertising one in order to severely limit the amount in circulation. I know I pulled a vast supply of liquidateable assets and converted it to hard form before this kicked in.

[Handloader109]

Gold & silver are the only money recognized by the constitution (eg. The only money the government is to be dealing with).
Tax structure for the new country appears to have been intended to be:
The federal government taxes the states & settles up with the above mentioned metal.
The states tax the citizens, either income (bad idea because anything taxed is by default discouraged) or commerce (better idea because this encourages individual states to complete for a better economy than its neighbors).

What we have now is a financial system (read parasite) consuming the economy.
Financial systems feed on debt and because our currency is borrowed into existence from a private institution (the fed) there is too much food for the parasites to be had.

Taxes and the abuse of the economy by the system may be a distraction & an effort to control the out of control inflation.

This is why we are taxed going, coming & standing still. In an economy based on sound money this kind of theft would be too obvious to be hidden.Wrong. Gold and silver were the only coin a STATE could mint. Federal government was never prohibited from making money from anything. And nowhere is gold or silver mandated to be the standard...

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[Handloader109]

but back to the PayPal topic. They lost 25% or more today as folks are fleeing the company and it is impacting their bottom line

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[Jaaymar]

Wrong. Gold and silver were the only coin a STATE could mint. Federal government was never prohibited from making money from anything. And nowhere is gold or silver mandated to be the standard...

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Correct the states are prohibited from coining money or from using anything except gold & silver.
The federal government could make anything into currency however the states could not accept or spend anything but gold & silver.

Please read ARTICLE I, SECTION 8, CLAUSE 5.
Enumerated must be spelled out.
Eg. If they are not specifically granted the right to do something then they are prohibited from doing the thing.
See: https://www.heritage.org/constitution/#!/articles/1/essays/42/coinage-clause
Common usage at the time.

[jaysouth]

Cash is still king. Next is USPS money orders. By the way, USPS MOs never expire. File the carbon copies in a secure location in case the original is lost.

[uscra112]

Wrong. Gold and silver were the only coin a STATE could mint. Federal government was never prohibited from making money from anything. And nowhere is gold or silver mandated to be the standard...

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The primary reason the we HAVE our Constitution is that individual states had issued vast amounts of scrip to pay the bills for the Revolutionary War. This turned into a massive cluster when speculators bought it all up for pennies on the dollar, and then started agitating for the state governments to buy it back at face value in gold. Corrupt finance is not a new invention. The new Constitution basically absorbed all that state debt, and ultimately paid it off by selling land in the newly opened Northwest Territories, (i.e. Ohio and Indiana). The book is Unruly Americans by Woody Holton.

Needless to say, the Founders prohibited the states from issuing fiat currency ever again.

I did see that PP stock got hammered. I love the smell of schadenfreude in the morning. . . . . . .

[imashooter2]

I’ve read several of these threads on different gun boards... they are all the same. The point of this new regulation is to jam up the little guy. The kid mowing lawns and the guy selling the gun parts he bought 30 years ago. The yearly amount was clearly set to target these small fry.

The IRS will take the default position that every 1099 is income and say you owe them money. And anyone that thinks they are going to simply tell the IRS they’re wrong or show them a pile of receipts they picked up in the Home Depot parking lot hasn’t been paying a lot of attention to the reality of dealing with the IRS. You better have your ducks in a row and even then you might be better off paying the extortion than taking a principled stand.

And if you have state and local income and sales taxes, you can bet your bottom dollar that those agencies will be cross referencing 1099s to get their cut.

This is going to be a huge goat rope.

But then again, some people say I’m a cynic.

[uscra112]

Cash is still king. Next is USPS money orders. By the way, USPS MOs never expire. File the carbon copies in a secure location in case the original is lost.

In times of inflation, it's better to hold stuff. In times of deflation, hold cash. If they'll let you.

[savagetactical]

In times of inflation, it's better to hold stuff. In times of deflation, hold cash. If they'll let you.

This is correct ... The only way to combat high inflation is with high living . Buy the things you want or think you may need today as they will be more expensive tomorrow .

[uscra112]

I'm seeing reports that commodity indices are way up. Professional investors making preparations?

[Finster101]

Cash is still king. Next is USPS money orders. By the way, USPS MOs never expire. File the carbon copies in a secure location in case the original is lost.

Some guys love those things. I have gotten to despise going to the post office. I will not buy items if that is the only form of payment accepted. I have read others post on the forum who feel the same as me.

[uscra112]

I suppose that's dependent on how difficult it is to access your Post Office. My village P.O. is easy, some urban ones are difficult. (I'm on crutches a lot, so I'm very aware of this.) But consider that you're buying with cash, and if you leave the sender lines blank, a USPS M.O. is about as anonymous as anything can be in this day and ag

[Finster101]

I suppose that's dependent on how difficult it is to access your Post Office. My village P.O. is easy, some urban ones are difficult. (I'm on crutches a lot, so I'm very aware of this.) But consider that you're buying with cash, and if you leave the sender lines blank, a USPS M.O. is about as anonymous as anything can be in this day and ag

Except for all the camera's recording you with date and time stamping. There is no privacy anymore. That is not my primary concern. During the winter here our population nearly doubles with all the snowbirds and with all the restrictions up north it has been even worse this year. This is just my opinion and my choice.

[uscra112]

Cameras. The tiny Post Office in my rural village doesn't have any.

[Lloyd Smale]

And with the stroke of a pen the underground economy just grew 10 fold.

Personal gripe here but why on earth do we have to pay tax on a item that has already been taxed?

i agree. I pay my fed and state taxes on income then pay more tax on the same money when i buy something. Look at a truck. You pay tax on your income then sales tax on the vehicle, then license fees (another tax) every year. Some states an emission sticker (another tax) Then you pay tax on your gas. Get it repaired, by oil, parts or anything for it? Pay some more taxes. For many a 1/3 to a 1/2 of the income goes to taxes and im suppose to feel guilty for buying something on line and save a buck or two on sales tax!!! Bottom line is that company already paid taxes when they bought it and thats factored to the price. Only one not getting some money is the government and they get plenty of mine as it is. Add to that probably 75 percent of whats bought on line is bought there because its not avaliable in the local mom and pop store. I guess if it bothers you you can go to walmart and probably find it and make the rich richer.

[imashooter2]

Some guys love those things. I have gotten to despise going to the post office. I will not buy items if that is the only form of payment accepted. I have read others post on the forum who feel the same as me.

We all make choices.

[fastdadio]

I suppose that's dependent on how difficult it is to access your Post Office. My village P.O. is easy, some urban ones are difficult. (I'm on crutches a lot, so I'm very aware of this.) But consider that you're buying with cash, and if you leave the sender lines blank, a USPS M.O. is about as anonymous as anything can be in this day and ag

You don't have to go to the PO to cash the check. You can deposit a USPO mo at your bank the same as any other check. Wait for it to clear, and then proceed with the sale. And be aware, USPO money orders are subject to fraud the same as any other check. They're just a bit harder due to the water marks and the halograph stamp.

[Baltimoreed]

Businesses don’t pay taxes, corporations don’t pay taxes. If they make a component or product, finished or not, or have a service that they sell— the last guy in line pays the taxes. That’s you and me. Corporate taxes are just another hidden tax for the consumer and another revenue stream for the knuckleheads [of both parties] inside the beltway.

[Buck Shot]

I pay my fed and state taxes on income then pay more tax on the same money when i buy something. Look at a truck. You pay tax on your income then sales tax on the vehicle, then license fees (another tax) every year. Some states an emission sticker (another tax) Then you pay tax on your gas. Get it repaired, by oil, parts or anything for it? Pay some more taxes.

Don't forget the so-called "Personal Property Taxes" that many of us pay year after year, every year, on vehicles, boats, trailers, tools and machinery (if you have a business where you use tools and machinery to make income, not only is that income taxed -- and not only did you pay sales tax on those tools and machinery -- you also have to pay an annual tax on the value of the machinery and tools), etc etc etc etc etc etc etc etc

[Shawlerbrook]

I laugh when I hear that the Democrats are the working man party. They tax, regulate , rule, fee , and law the law abiding working man to death to give some crumbs to their uneducated legacy base and billions to their elite donors. And you wonder why they want to disarm us. Wake up America !!:killingpc

[Handloader109]

Yes, this was all about the guy mowing your lawn, or delivering your groceries, or driving that uber, or any other myriad of ways we make a bit of change. Tax every penny. The dems played this as getting the big corporations that weren't paying their fair share. Bullhockey. what corporation worries about taking paypal, or venmo? zero. all about screwing the little guy so they can feel good about handing an illegal subsistence.
And as for MO? I hate them. I hate driving 25 miles to get one and standing in line for 5 to 15 minutes. And I HAVE to deposit in my bank account if over $25 as the PO won't have any cash..... or other reason

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[dpaultx]

LOL, this doesn't change ANYTHING.
Paypal is just a easy quick way for payment.
People will just go back to sending checks or money orders.

And speaking of that, is the USPS going to keep track of EVERYONE that cashes a USPS money order in their facility to see if they get more then $600 in payments a year??

HaHaHa . . . The only thing that USPS employees can keep track of is what time their next coffee break is.

:-D