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

[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?