GS & IRS $600 rule

[Rjex]

Just a heads up, we're gonna have to declare all PayPal/Venmo/CashApp transactions exceeding $600 per year and then prove they're not income now. More IRS bullshit to keep up with.

https://www.youtube.com/watch?v=92sX4kS5XNQ

[Tgo01]

and then prove they're not income now.

That's the part that gets me the most about all of this. Since when do we have to prove money we are receiving is not income? Shouldn't that be up to the government to prove that it is income?

[Archigeek]

It does seem rather petty, especially considering that short of large somes of money, collecting is going to be a money losing proposition. On the other hand, the IRS has always assumed that your money coming in is income. What I don't understand is, why bother? Next thing you know they'll be after the kids who shovel my sidewalk for 25 bucks.

[Tgo01]

especially considering that short of large somes of money, collecting is going to be a money losing proposition.

Didn't they recently announce they were going to hire 86k more IRS agents? I'm sure some of them are going to be assigned to this.

I'm sure they are hoping to scare people into voluntarily reporting income, even money they have received that isn't income, scare people enough and they would rather pay a few extra dollars a year rather than risk being audited.

They probably wouldn't go after people unless they see a large amount of income coming in and it not being reported on their tax returns, but who even knows anymore? This is all kinds of fucked.


On the other hand, the IRS has always assumed that your money coming in is income.

Have they? That seems like BS on the part of the IRS. If someone wants to gift me 10,000 dollars then that is their own business, I shouldn't have to prove to the IRS that it was a gift and not income.

[Suppressed Poet]

Lucky for y’all I have slashed prices on my cyber service to $599.99.

[Viekn]

Just a heads up, we're gonna have to declare all PayPal/Venmo/CashApp transactions exceeding $600 per year and then prove they're not income now. More IRS bullshit to keep up with.

https://www.youtube.com/watch?v=92sX4kS5XNQ

I'm at around 2:15 in the video, and unless I'm misunderstanding something, there's already a misleading statement from this guy.

At 1:30 he says "Previously the threshold for this whole process was $20,000 dollars." Starting around the 2:15 mark, he says "So you're telling me that you're going to have the IRS focus their resources; hunting down, chasing down people that are making $600 in side income." $600 is merely the new ceiling that triggers the reporting. Describing it the way he did completely ignores the people who were making upwards of $19,999 from the delivery of goods and services that legally should have been reported to the IRS, but because the loophole existed to set the threshold for these payment apps was $20k, they were able to get away with not reporting it. Instead he uses his so called expert opinion because because he's a "CPA" to skew the facts to make it look like the IRS is evil and wants to come after simple people just trying to make a little bit of side income.


Let me insert a Stephen Colbert meme that completely misses the the point of Viekn's post

I clearly wasn't making a big deal out of the people not reporting upwards of $19,999k that actually should have been reported, but pointing out the fact that the person in this video, holding themselves out to be an expert, quite obviously skewed the details of what this rule now does to fit the narrative he's trying to push, which throws the whole video and his assertions into question because of his biased motivations.

[Neveragain]

people who were making upwards of $19,999 from the delivery of goods and services

https://thumbs.gfycat.com/AgedWildIbisbill-size_restricted.gif

[C.Difficile]

His point is that 600 is so low it's almost pointless because you will get back millions of returns that they no one cares about.

Yea the IRS isn't evil, they dont write the tax laws. Congress does, blame them if you dont like something.

[Rjex]

I'm at around 2:15 in the video, and unless I'm misunderstanding something, there's already a misleading statement from this guy.

At 1:30 he says "Previously the threshold for this whole process was $20,000 dollars." Starting around the 2:15 mark, he says "So you're telling me that you're going to have the IRS focus their resources; hunting down, chasing down people that are making $600 in side income." $600 is merely the new ceiling that triggers the reporting. Describing it the way he did completely ignores the people who were making upwards of $19,999 from the delivery of goods and services that legally should have been reported to the IRS, but because the loophole existed to set the threshold for these payment apps was $20k, they were able to get away with not reporting it. Instead he uses his so called expert opinion because because he's a "CPA" to skew the facts to make it look like the IRS is evil and wants to come after simple people just trying to make a little bit of side income.

if they didn't want to go after people making $600 per year from paypal, why set a $600 ceiling then? They could've lowered it from 20k to 10k or something. The whole point of such a low ceiling is to include all those people making very little.

[Rjex]

What annoys me in this is how to explain to the IRS that the magic horn I sold in GS4 wasn't profit because I acquired it with silvers a year earlier. How would I even prove that it isn't income now. Do you think the auditor will understand?

[Suppressed Poet]

What annoys me in this is how to explain to IRS that the magic horn I sold in GS4 wasn't profit because I acquired it by trading some magic shoes for it a year earlier. Do you think the auditor will understand?

The IRS doesn’t really care where the income came from, including illegal activity, as long as you report it on a 1040.

[Teveriel]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

[Lavastene]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?
Correct.

Now, all the tickets I sold on Stubhub are a different matter.

[Teveriel]

Correct.

Now, all the tickets I sold on Stubhub are a different matter.

Big oof.

[Methais]

It does seem rather petty, especially considering that short of large somes of money, collecting is going to be a money losing proposition. On the other hand, the IRS has always assumed that your money coming in is income. What I don't understand is, why bother? Next thing you know they'll be after the kids who shovel my sidewalk for 25 bucks.

You mean they haven't already shut them down for not having a driveway shoveling permit?

[Tgo01]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

Who knows? Something tells me if it were that simple to avoid this rule then everyone would do it.

[Tgo01]

What annoys me in this is how to explain to the IRS that the magic horn I sold in GS4 wasn't profit because I acquired it with silvers a year earlier. How would I even prove that it isn't income now. Do you think the auditor will understand?

And that's part of this issue for this community in particular. If someone receives 20k from people during DR, but they spent 17k on the SimuCoins, then they really only earned 3k in profit, but the IRS is going to see 20k and will expect that to show up on their tax return as income unless the person can prove it wasn't all income. This is such a clusterfuck.

[Silvanostar]

guess we're going back to money orders :)

[Rolis]

This tax policy going into effect for 2023? Or retro active to 2022?

Sent from my IN2015 using Tapatalk

[Rolis]

This tax policy going into effect for 2023? Or retro active to 2022?

Sent from my IN2015 using TapatalkOh, ignore. Video title says 2022.. I think I found my answer

Sent from my IN2015 using Tapatalk

[Methais]

What annoys me in this is how to explain to the IRS that the magic horn I sold in GS4 wasn't profit because I acquired it with silvers a year earlier. How would I even prove that it isn't income now. Do you think the auditor will understand?

First thing to say is "Do you play Gemstone IV?"

[Rjex]

And that's part of this issue for this community in particular. If someone receives 20k from people during DR, but they spent 17k on the SimuCoins, then they really only earned 3k in profit, but the IRS is going to see 20k and will expect that to show up on their tax return as income unless the person can prove it wasn't all income. This is such a clusterfuck.

This exactly. We're dealing with bullshit virtual items and currencies and no way to prove any of it is real. Anything they see coming in is going to be assumed to be 100% profit when it might 5% profit or worse yet, a loss. A few years ago you might have paid $4k for that piece of gear and now you can barely sell it for half of its value? Doesn't matter, better get ready to pay tax on that 2k pure profit that you just made according to the IRS.

[Methais]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

Yes. Except for that one time Rendena bought silvers from me and didn't send as F&F. And someone else one other time too but I forgot who.

Dammit.

[Gelston]

Haha

[Lavastene]

Big oof.
You're telling me.


And that's part of this issue for this community in particular. If someone receives 20k from people during DR, but they spent 17k on the SimuCoins, then they really only earned 3k in profit, but the IRS is going to see 20k and will expect that to show up on their tax return as income unless the person can prove it wasn't all income. This is such a clusterfuck.
Yeah, my accountant and I will have fun with this all when I submit my returns. I don't have to worry about this for GS items, but for my tickets I will absolutely be deducting the cost of the purchase of the actual tickets.

[onurb]

If I donated several times to the Dreaven Foundation, thats tax exempt right?

[Tgo01]

If I donated several times to the Dreaven Foundation, thats tax exempt right?

All donations to the Dreaven Foundation are tax deductible.

[Neveragain]

What annoys me in this is how to explain to the IRS that the magic horn I sold in GS4 wasn't profit because I acquired it with silvers a year earlier. How would I even prove that it isn't income now. Do you think the auditor will understand?

Obviously they will have to audit SIMU.

Don't for a minute think that this isn't all about finding a way to tax virtual products. They know what the future holds for VR, they are not going to be left out.

[gilchristr]

"Isn't it standard practice here for buyers to mark our payments as gifts/F&F?"

Form over substance. You do not get a pass on paying tax simply because a payment is "marked" as friends and family. The true nature of the transaction is what controls. While this might not sound cool, you should pay the taxes you owe, and not cheat

[Parkbandit]

Use Zelle.

For whatever reason, they are not reporting this "income".. I'm guessing their lobbyists are just better than Venmo's/Paypal's.

[beldannon5]

"Isn't it standard practice here for buyers to mark our payments as gifts/F&F?"

Form over substance. You do not get a pass on paying tax simply because a payment is "marked" as friends and family. The true nature of the transaction is what controls. While this might not sound cool, you should pay the taxes you owe, and not cheat

Taxes i owe? Hmm I received a good amount of money from people but put almost all of it back in the game. Should I pay taxes on that or just what I came out ahead. Where does it get figured out? There is a fine lone between paying and cheating. Also the government fkng sucks taxing everything. That's not how it was supposed to be.

[Parkbandit]

Taxes i owe? Hmm I received a good amount of money from people but put almost all of it back in the game. Should I pay taxes on that or just what I came out ahead. Where does it get figured out? There is a fine lone between paying and cheating. Also the government fkng sucks taxing everything. That's not how it was supposed to be.

I fucking HATE dealing with taxes and figuring shit out, but I believe that unless you are doing it under a company structure where you can determine revenue vs. costs to determine "profit", then you might be screwed.

All year long I was preaching this to my daughter who sells shit on Etsy.. I was telling her all year long "You should make a company so you can take advantage of the tax loopholes" but she didn't listen.

[drumpel]

It does seem rather petty, especially considering that short of large somes of money, collecting is going to be a money losing proposition. On the other hand, the IRS has always assumed that your money coming in is income. What I don't understand is, why bother? Next thing you know they'll be after the kids who shovel my sidewalk for 25 bucks.

The one that really caught me off guard was years ago, after being let go at my job and bills piled up and blah, blah, blah. After eventually getting my feet under me and paying off a debt on a defaulted credit card......in the mail came a 1099-C (if I remember correctly). So not only did I pay off a debt I had, the government now tells me that the debt I paid off was taxable income that I now had to give the government money against it. That's fucked up. Straight up, fucked up.

The government has overextended their reach by so much when it comes to taking money from people and they constantly want more, more, more.

[Neveragain]

The one that really caught me off guard was years ago, after being let go at my job and bills piled up and blah, blah, blah. After eventually getting my feet under me and paying off a debt on a defaulted credit card......in the mail came a 1099-C (if I remember correctly). So not only did I pay off a debt I had, the government now tells me that the debt I paid off was taxable income that I now had to give the government money against it. That's fucked up. Straight up, fucked up.

The government has overextended their reach by so much when it comes to taking money from people and they constantly want more, more, more.

If you have ever been caught up in the "IRS shuffle" you will never support the IRS again.

[Parkbandit]

If you have ever been caught up in the "IRS shuffle" you will never support the IRS again.

My favorite is their deadlines to tax payers... meet this deadline or you will be penalized.. no ands, ifs or buts about it.

But when they mistakenly tried to steal more money out of me, my accountant sent them back a letter saying they fucked up and that the actual correct number was you owe my client an additional $10000.00

They sent me back a letter saying something like "We need additional time to complete our review. If we can't figure this out in the next 90 days, we will send you another letter asking for additional time"

Fucking morons.

If you can't hack it as an accountant, then the IRS has a job opening for you!

[Gelston]

GS is destroyed by the IRS, Whatley flees to Russia.

[Neveragain]

My favorite is their deadlines to tax payers... meet this deadline or you will be penalized.. no ands, ifs or buts about it.

But when they mistakenly tried to steal more money out of me, my accountant sent them back a letter saying they fucked up and that the actual correct number was you owe my client an additional $10000.00

They sent me back a letter saying something like "We need additional time to complete our review. If we can't figure this out in the next 90 days, we will send you another letter asking for additional time"

Fucking morons.

If you can't hack it as an accountant, then the IRS has a job opening for you!

Took nearly a decade to clear up my troubles with the IRS after receiving some inheritance. They must have changed case handlers 5 times and lost all my paperwork several times.

Would receive a notice, send in all the paperwork, not hear anything for a couple years, think I was in the clear and then receive another letter. I would call them and get the same shit "Oh, your files have been handed to a different agent and we need your paperwork again"

[BLZrizz]

The one that really caught me off guard was years ago, after being let go at my job and bills piled up and blah, blah, blah. After eventually getting my feet under me and paying off a debt on a defaulted credit card......in the mail came a 1099-C (if I remember correctly). So not only did I pay off a debt I had, the government now tells me that the debt I paid off was taxable income that I now had to give the government money against it. That's fucked up. Straight up, fucked up.

That doesn’t make sense. If you had a debt that was forgiven or discharged, yes the government would consider that taxable income.

[Fortybox]

Taxes i owe? Hmm I received a good amount of money from people but put almost all of it back in the game. Should I pay taxes on that or just what I came out ahead. Where does it get figured out? There is a fine lone between paying and cheating. Also the government fkng sucks taxing everything. That's not how it was supposed to be.

You’re screwed.

[Fortybox]

This exactly. We're dealing with bullshit virtual items and currencies and no way to prove any of it is real. Anything they see coming in is going to be assumed to be 100% profit when it might 5% profit or worse yet, a loss. A few years ago you might have paid $4k for that piece of gear and now you can barely sell it for half of its value? Doesn't matter, better get ready to pay tax on that 2k pure profit that you just made according to the IRS.

Why are you complaining about this now? This was known for awhile now.

[gilchristr]

I think gamblers have always had to declare winnings on their tax forms. If the gambler had losses to offset the winnings, they had to track them.

So its always been like this.

[yesicj]

Yep, and if you win more than a certain amount (it varies depending on what you're playing), the casino is required to report it to the IRS and issue you a W-2G

[Methais]

https://media3.giphy.com/media/du48e9fyE4neAY7XtD/giphy.gif

[Parkbandit]

Just remember.. anyone making less than $400K a year will not see 1 extra penny in new taxes.

Joe can't believe some of you people actually believed him.

https://media.tenor.com/fLgNjCQBI7YAAAAC/joe-biden-head-shake.gif

[Seran]

Just remember.. anyone making less than $400K a year will not see 1 extra penny in new taxes.

Joe can't believe some of you people actually believed him.

https://media.tenor.com/fLgNjCQBI7YAAAAC/joe-biden-head-shake.gif

You're confusing paying higher taxes on reported income with those people who hide income in order to escape taxes. Tax fraud is a crime and should be caught.

[Methais]

You're confusing paying higher taxes on reported income with those people who hide income in order to escape taxes. Tax fraud is a crime and should be caught because someone has to fund my disability check.

Fixed.

[Slark]

Delayed:

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k

[beldannon5]

I was just about to post

[Parkbandit]

Does the IRS realize that the Democrats who pushed this bill are retarded?

[Gelston]

Does the IRS realize that the Democrats who pushed this bill are retarded?

Not their job.

[Parkbandit]

You're confusing paying higher taxes on reported income with those people who hide income in order to escape taxes. Tax fraud is a crime and should be caught.

What?

It's not tax fraud since it's currently only reportable for more than 20K a year.

It's literally following the tax code.

[Parkbandit]

Not their job.

What's not the IRS' job? Determining the retard level of Democrats?

I agree. Most probably already know.

[Gelston]

What's not the IRS' job? Determining the retard level of Democrats?

I agree. Most probably already know.

Their job is to enforce tax laws, regardless of who passed them and how retarded they may seem.

[Parkbandit]

Their job is to enforce tax laws, regardless of who passed them and how retarded they may seem.

I get it.. was just fucking with you.

BUT.

There is a law that said you must report anything over $600 starting 1/1/23.

The IRS said they are delaying the implementation of that law.