08-09-2022 01:20 PM
Joe Biden already signed into law the stimulus bill that requires E-Bay to report your sales to the IRS if you make $600 a year or more in sales.
Now Democrats are about ready to pass legislation (passed the Senate already) that will authorize the IRS to hire 87,000 more agents. They say it is to go after billionaires who aren't paying their fair share! There are only 700 billionaires in the USA. You don't need 87,000 agents to go after 700 people!
The real reason they want to hire 87,000 agents is so they can go after YOU! Those agents are going to be going after all you E-Bay sellers who aren't correctly reporting your 1099 or keeping the correct records! Then even if you are only off a little, they will hit you with fines and penalties to jack up how much you have to pay the IRS.
These two bills aren't a coincidence, they are a plan! Regardless of your political party, if you sell on E-Bay you better be contacting your House representative and demand they vote down the Inflation Reduction Act.
No one was paying attention when they snuck in the $600 1099's, but you better pay attention now or they will be sneaking in 87,000 IRS agents whose job is to come after you!
08-10-2022 07:59 AM
Paranoid much?
08-10-2022 08:12 AM
08-10-2022 08:14 AM
@itsjustasprain true. But it's pathetic that millions of paper returns are handled in this archaic fashion as well as any discrepancies. the IRS needs that money. (and yeah, turbotax for years!)
08-10-2022 08:25 AM
Its not just eBay...also Pay Pal...even Airbnb and so on. Quite a bite of money exchanging hands while not selling anything have been happening. One used to give $19,999.00 to someone else through Pay Pal...not anymore. People renting out their homes and not paying taxes on that.
Then there are Uber drivers who get a 1099 tax form and not all of them pay taxes. And Doordash drivers who get a 1099 form...some don't pay taxes.
08-10-2022 10:18 AM
Wow - that rant (message 84) tangented into a litany of various off-the-subject grievances.
To stay on subject, my post was responding to mrfindit who seems to imply the IRS is hiring 87,000 more agents, "to go after YOU!" (Caps and exclamation his.)
That is the alarmist message being parroted around by some, but the actual figures are more nuanced than that.
Time magazine may lean left of center, but it is highly regarded for factual and accurate sourced reporting.
Full Time article here: https://time.com/6204928/irs-87000-agents-factcheck-biden/
08-10-2022 10:30 AM
When someone evades taxes it takes money out of the pockets of those who have been paying taxes on ebay all along....Not to mention that it deprives American Soldiers of protective body armour.
08-10-2022 10:36 AM
@goombaymama wrote:@itsjustaspraintrue. But it's pathetic that millions of paper returns are handled in this archaic fashion as well as any discrepancies. the IRS needs that money. (and yeah, turbotax for years!)
I saw that article. It's kind of interesting to see, but I had a couple of thoughts while reading it...
08-10-2022 10:46 AM
@goombaymama wrote:visually excellent, informative, and timely to this oddball thread. (hope it is not behind a paywall.)
IRS today working along to come after you.
This is not a single influx in cash to the IRS. It is phased in over a TEN year period so they can increase staffing in ALL areas to meet the needs of the department. It is NOT just for auditors.
08-10-2022 10:51 AM
@12345jamesstamps wrote:Its not just eBay...also Pay Pal...even Airbnb and so on. Quite a bite of money exchanging hands while not selling anything have been happening. One used to give $19,999.00 to someone else through Pay Pal...not anymore. People renting out their homes and not paying taxes on that.
Then there are Uber drivers who get a 1099 tax form and not all of them pay taxes. And Doordash drivers who get a 1099 form...some don't pay taxes.
This is one of the MAJOR misconceptions about the 1099K. The minimum threshold on this FORM does NOT determine the minimum threshold for the IRS in when people are suppose to report their income.
When the 1099K had a minimum threshold of 20K, that does NOT mean that those that made $19,999.99 and less didn't have to report their income. Yet some assumed that and that is what is going to cause many people real problems with the IRS.
There is many people from all kinds of different jobs that won't pay taxes on the Gross Receipts reported on a 1099K. That is going to depend on the details for that particular person. It is not one size fits all.
08-10-2022 10:54 AM
@katz.paw wrote:Wow - that rant (message 84) tangented into a litany of various off-the-subject grievances.
To stay on subject, my post was responding to mrfindit who seems to imply the IRS is hiring 87,000 more agents, "to go after YOU!" (Caps and exclamation his.)
That is the alarmist message being parroted around by some, but the actual figures are more nuanced than that.
Time magazine may lean left of center, but it is highly regarded for factual and accurate sourced reporting.
Full Time article here: https://time.com/6204928/irs-87000-agents-factcheck-biden/
Yes you are absolutely right and I posted some links proving this a little earlier in this thread. The bill allows for IRS to hire 87,000 employees over the next TEN years. Some will most certainly be auditors, but others will be processors, IT specialists, file clerks, data entry clerks, etc. Whatever the needs are for IRS.
08-10-2022 10:57 AM - edited 08-10-2022 10:57 AM
If you get an EIN and don't file a LLC it's basically the same as having to eat the income on a personal tax return with literally no benefit and is a true waste of time, in my opinion.
You have more options (such as business credit) with a LLC and have more leeway for acceptable deductions.
With a S corp you can pass thru the true "income" post - deduction to yourself and add that to your tax return.
I've also read somewhere a record number of LLCs have been formed this year, I am sure due in no small part to this law that was signed back in March of 2021.
08-10-2022 11:00 AM
i was being facetious. 🙂 bottom line is the IRS is an IT mess. It needs the money allocated and probably more.
08-10-2022 11:01 AM
The democrats passed this into law in March of 2021, Biden signed it.
That's all everyone needs to know. Keep taxing the little guys while corporations obtain record profits under the false inflation narrative to recoup 2020 losses.
Now the government will also be recouping 2020 payouts in no small part due to this threshold change.
Not complicated - it's obvious.
08-10-2022 11:30 AM
"If you get an EIN and don't file a LLC it's basically the same as having to eat the income on a personal tax return with literally no benefit and is a true waste of time, in my opinion." You will be happy to know this is not correct. It is simply a way some have another layer of protection over giving out their SSN.
I am a Sole Proprietorship, which takes no special paperwork to be filed with a state. I'm able to deduct what I need to deduct from my income as business expenses. I don't need to be an LLC to accomplish this.
An S Corp would be for a much larger seller than most of us that post on the forums here. There are real expenses to setting this up as well.
08-10-2022 11:43 AM
@mam98031 wrote:
"If you get an EIN and don't file a LLC it's basically the same as having to eat the income on a personal tax return with literally no benefit and is a true waste of time, in my opinion." You will be happy to know this is not correct. It is simply a way some have another layer of protection over giving out their SSN.
I am a Sole Proprietorship, which takes no special paperwork to be filed with a state. I'm able to deduct what I need to deduct from my income as business expenses. I don't need to be an LLC to accomplish this.
Yes so basically you are eating the income on your personal tax return with none of the deduction benefits of keeping it separated. Also true the EIN masks your SSN but that's all a stand alone EIN really does which is why it is free.
There will be more than a few folks who simply can't eat income into their personal income for various reasons. Especially seniors or those on disability as it can reduce or even eliminate their eligibility for benefits.