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IRS delays reporting on PayPal

From the NYT today:


The Internal Revenue Service said on Friday that it is delaying by one year a new tax policy that will require users of digital wallets and e-commerce platforms to start reporting small transactions to the tax collection agency.
The delay of the rule comes in the wake of bipartisan backlash from lawmakers and an uproar from small business owners, who only recently became aware of the tax change.
The I.R.S. said that the delay is intended to provide a smooth transition period for taxpayers to comply with the policy, which was enacted as part of the American Rescue Plan of 2021 and which was supposed to take effect this year. Many users of services such as Venmo, PayPal, Cash App, StubHub and Etsy only recently became aware that they would be receiving I.R.S. tax forms associated with their transactions, sowing fears of surprise tax bills.
“The I.R.S. and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” Douglas O’Donnell, the acting I.R.S. commissioner, said in a statement. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the I.R.S. will delay implementation of the 1099-K changes.”
 

luvmysuper

My elbows leak
Staff member
"The American Rescue Plan of 2021"

Captain America Lol GIF by mtv
 
The good news is that silent film restoration kickstarters get a reprieve for this year, but it may not encourage more silent restoration kickstarters going forward.
 
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rbscebu

Girls call me Makaluod
To solve the problem, just give all your income to the IRS and rely on the government to keep you in the manner to which you wish to become accustome.

After all, the government have highly trained experienced professionals who are much better than you at spending your money. You would probably waste your income on frivolous things like shaving gear.
 

luvmysuper

My elbows leak
Staff member
Luke 4:24
You're not a prophet, and this isn't your home town.

Don't blame Paypal for the sins of Government regulations.
Blame the people that vote that Government to power.

Matthew 17-21
Tell us then, what is your opinion? Is it right to pay the imperial tax to Caesar or not?”

But Jesus, knowing their evil intent, said, “You hypocrites, why are you trying to trap me? Show me the coin used for paying the tax.” They brought him a denarius, and he asked them, “Whose image is this? And whose inscription?”

“Caesar’s,” they replied.

Then he said to them, “So give back to Caesar what is Caesar’s, and to God what is God’s.”


If someone is making $600 or more in sales profits after all legal offsets have been applied, then they need to pay their taxes.
The law has always been that people were supposed to self report income.
Enough people who "warned us" about PayPal didn't do that, and THAT'S what brought about the issue.

To be clear - my laughing hysterically gif is NOT about PayPal, it's about Government propensity to name regulations the opposite of what they actually represent.
 
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It’s tough, I traded several bags of tobacco for a shave brush that I want to sell. I don’t have any receipts and certainly want to give the IRS even more money. The bummer is the extra $500 my accountant wants to prepare an extra bunch of paperwork for my new PayPal “business”.
 

luvmysuper

My elbows leak
Staff member
It’s tough, I traded several bags of tobacco for a shave brush that I want to sell. I don’t have any receipts and certainly want to give the IRS even more money. The bummer is the extra $500 my accountant wants to prepare an extra bunch of paperwork for my new PayPal “business”.
I sympathize.
This certainly is going to create a need for us to keep receipts and valuations. More trouble than I care for, but...
That's what the regulation is designed to do. Make it more difficult for grey money transactions to take place.
Government wants their cut, and if you don't give it to them, then they'll make darn sure you don't get it either.
 
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