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Thread: More Warnings For Paypal Users

  1. #1
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    DougGuy's Avatar
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    More Warnings For Paypal Users

    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...
    Got a .22 .30 .32 .357 .38 .40 .41 .44 .45 .480 or .500 S&W cylinder that needs throats honed? 9mm, 10mm/40S&W, 45 ACP pistol barrel that won't "plunk" your handloads? Click here to send me a PM You can also find me on Facebook Click Here.

  2. #2
    Boolit Buddy
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    That's the number biteme and crew threw out earlier for surveillance of finances.... welcome to the brave new world!
    Chicken Little has finally found an audience

  3. #3
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    MrWolf's Avatar
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    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.

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    JWFilips's Avatar
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    Same with e-Bay!
    " Associate with men of good quality, if you esteem your own reputation: for it is better to be alone than in bad company. " George Washington

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    HATCH's Avatar
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    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.

  6. #6
    Boolit Master
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    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!
    Last edited by NyFirefighter357; 01-25-2022 at 08:58 PM.

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    Quote Originally Posted by NyFirefighter357 View Post
    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??
    Don't like being hammered by the Cast Boolits Staff, then don't be a nail.
    The rules are simple to follow.

  8. #8
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    Quote Originally Posted by MrWolf View Post
    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.
    Mal

    Mal Paso means Bad Pass, just so you know.

  9. #9
    Boolit Master zymguy's Avatar
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    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

  10. #10
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    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.

  11. #11
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    Plate plinker's Avatar
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    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?

  12. #12
    Boolit Master elmacgyver0's Avatar
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    Quote Originally Posted by Plate plinker View Post
    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.

  13. #13
    Boolit Master Scrounge's Avatar
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    Quote Originally Posted by elmacgyver0 View Post
    Because we are a bunch of saps.
    Bullseye!

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    Boolit Grand Master uscra112's Avatar
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    Quote Originally Posted by HATCH View Post
    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.
    Cognitive Dissident

  15. #15
    Boolit Master Ithaca Gunner's Avatar
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    Quote Originally Posted by Plate plinker View Post
    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.
    Liberalism is a cult divorced from reality.

  16. #16
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    Quote Originally Posted by MrWolf View Post
    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.

  17. #17
    Boolit Master 15meter's Avatar
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    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.

  18. #18
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    Quote Originally Posted by megasupermagnum View Post
    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.
    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.

  19. #19
    Boolit Buddy
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    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!
    Chicken Little has finally found an audience

  20. #20
    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

    Quote Originally Posted by DougGuy View Post
    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...
    Sometimes you eat the bar and sometimes the bar eats you.

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