I don't see many reasons to respond to these posts here any longer. It's obvious that some sellers feel this affects them in some favorable way and others know it only affects those responsible for issuing the forms.
2/3 of income goes unreported when there is no tax form or 1099 showing the income. The government knows this. That's why they tried to drop it to $600. Knowing this, the gov't raised it back to $20k, knowing that most of the income is going to go unreported. No wonder they're calling them tax breaks.
So, how does one get in trouble for not paying taxes on $7999. last year without a 1099K sent?
😎
If you report any other income or get any kind of government assistance, the slightest incongruity can trigger an audit, then the eBay sales get discovered very easily. -They have our SSN's.
"The President signed an executive order halting the hiring of federal employees, including IRS staff.
So, the odds of getting audited will likely remain very low."
"Even if you get audited, three-quarters of all audits are correspondence audits in which the IRS sends the taxpayer a letter in the mail asking about one or two issues."
Audits..."focusing on larger businesses and high-income individuals."
I can see people who do 'gig work(Uber and such).
And IRS does use AI from what I am reading.
"The IRS has stated its intention to avoid increasing audit rates for small businesses and taxpayers earning under $400,000."
So someone making a sale on $100 bucks will unlikely get in trouble...but like everyone saids we must pay taxes on all income which I do and understand.
As I worked for social services in the past...to qualify for government assistance one has to declare any banking they have and show a balance slip of what they have usually on day to obtain assistance.
And social services have the availability to check banking accounts on their own using SS#'s.
I wish I can read real stories of those who got an audit and how it happened.
"The President signed an executive order halting the hiring of federal employees, including IRS staff.
So, the odds of getting audited will likely remain very low."
"Even if you get audited, three-quarters of all audits are correspondence audits in which the IRS sends the taxpayer a letter in the mail asking about one or two issues."
Audits..."focusing on larger businesses and high-income individuals."
I can see people who do 'gig work(Uber and such).
And IRS does use AI from what I am reading.
"The IRS has stated its intention to avoid increasing audit rates for small businesses and taxpayers earning under $400,000."
So someone making a sale on $100 bucks will unlikely get in trouble...but like everyone saids we must pay taxes on all income which I do and understand.
As I worked for social services in the past...to qualify for government assistance one has to declare any banking they have and show a balance slip of what they have usually on day to obtain assistance.
And social services have the availability to check banking accounts on their own using SS#'s.
I wish I can read real stories of those who got an audit and how it happened.
Who are all those quotes from? You're replying to me, but I didn't say any of those things. I was simply replying to your question: "So, how does one get in trouble for not paying taxes on $7999. last year without a 1099K sent?" But now I don't know why you asked, since it appears you already know 'everything.'
"I wish I can read real stories of those who got an audit and how it happened."
Okay -- how 'bout this one?
Before my first wife and I were married in 1968, she had had a part time job in a laundromat, while she went to high school.
A few years after we were married, the IRS sent us the form letter for an audit, questioning her income from that part-time job.
At the IRS interview, I pointed out to the IRS investigator that my wife had been a full-time high school student for the year in question, and that any wages from that period were the result of a part-time job.
The IRS chose not to pursue the audit any further, since the amount was too minor to pursue, considering that the minimum hourly wage at that time was only $1.25 an hour; and, as a high school student, my wife would have been earning less than minimum wage at that time, anyway.
So, yeah -- the IRS doesn't always go after the high-rollers, do they?
It was considered a job...heck I had a job at 16 washing dishes when I was in high school but I declared my job.
Having a 'job' is a title different than selling a pair of gym shoes I would think.
Yes. I paid taxes (and paid into SS) even during the time that I was too young to have 'working papers' allowing me to work in my state. Because I worked for a family business (short order cook in a truck stop/diner) I was allowed to work younger than the age of 16 (I was 14 going on 15). Not sure how I would have avoided it, being that it was a jobby job, even if it was lower than minimum wage.
ETA: The owner was crazy - worst job I ever had, but that year I got a tax refund of $5!
So, how does one get in trouble for not paying taxes on $7999. last year without a 1099K sent?
I always break even on reporting sales and paying taxes but seems like a waste of time when one breaks even.
Or taxes on a $100.00 sale for the whole year?
And with the reduced IRS this year.
Regardless, I know we must pay taxes on sales.
If someone can answer the question that would be cool😎
The 1099K is provided as required by law for certain activities. If you are earning income with an activity that there is no 1099K reporting requirements, example you made $7000 cash mowing lawns, well you are on the honor system to report your income. So how you could get in trouble is if someone reported you for you cash activity. It happens and it is often someone you know that reports you.
I am not even sure what you mean by this statement?
"I always break even on reporting sales and paying taxes but seems like a waste of time when one breaks even."
Deductions(shipping supplies, etc) with income(sales) and usually don't owe anything...
Deductions are our best friend when we sell...so H and R Block tells me.
"It happens and it is often someone you know that reports you"....I only read about the rich doing that though...not Joe down the street who made $100. shoveling snow in the winter for someone.
fern*wood
·1 year agoI don't see many reasons to respond to these posts here any longer. It's obvious that some sellers feel this affects them in some favorable way and others know it only affects those responsible for issuing the forms.
mam98031
·1 year ago@leboat1010
I assume you are talking about the 1099K FORM.
The ONLY thing that would change is when or if you get the FORM. It has absolutely NOTHING to do with reporting your income.
If you think it gives you a Free $20K of tax free income, you'd be very wrong. The FORM does NOT set the threshold for taxable income.
chris90242
·1 year ago2/3 of income goes unreported when there is no tax form or 1099 showing the income. The government knows this. That's why they tried to drop it to $600. Knowing this, the gov't raised it back to $20k, knowing that most of the income is going to go unreported. No wonder they're calling them tax breaks.
funfactorychannel
·1 year agoWhat has the Better Business Bureau have to do with law today?😕
buyselljack2016
·1 year agoBig Beatuiful Bill
tsme35
·1 year agoIn Missouri, reporting income is $1200, other states are lower
kensgiftshop
·1 year agoWhat difference does it make if you get a 1099K or not, you still have to report your income.
12345jamesstamps
·1 year agoSo, how does one get in trouble for not paying taxes on $7999. last year without a 1099K sent?
I always break even on reporting sales and paying taxes but seems like a waste of time when one breaks even.
Or taxes on a $100.00 sale for the whole year?
And with the reduced IRS this year.
Regardless, I know we must pay taxes on sales.
If someone can answer the question that would be cool😎
gurlcat
·1 year agoIf you report any other income or get any kind of government assistance, the slightest incongruity can trigger an audit, then the eBay sales get discovered very easily. -They have our SSN's.
12345jamesstamps
·1 year ago"The President signed an executive order halting the hiring of federal employees, including IRS staff.
So, the odds of getting audited will likely remain very low."
"Even if you get audited, three-quarters of all audits are correspondence audits in which the IRS sends the taxpayer a letter in the mail asking about one or two issues."
Audits..."focusing on larger businesses and high-income individuals."
I can see people who do 'gig work(Uber and such).
And IRS does use AI from what I am reading.
"The IRS has stated its intention to avoid increasing audit rates for small businesses and taxpayers earning under $400,000."
So someone making a sale on $100 bucks will unlikely get in trouble...but like everyone saids we must pay taxes on all income which I do and understand.
As I worked for social services in the past...to qualify for government assistance one has to declare any banking they have and show a balance slip of what they have usually on day to obtain assistance.
And social services have the availability to check banking accounts on their own using SS#'s.
I wish I can read real stories of those who got an audit and how it happened.
gurlcat
·1 year agoWho are all those quotes from? You're replying to me, but I didn't say any of those things.
I was simply replying to your question:
"So, how does one get in trouble for not paying taxes on $7999. last year without a 1099K sent?"
But now I don't know why you asked, since it appears you already know 'everything.'
broto_64
·1 year agoI can tell you tax returns trigger audits and once triggered BOLO
1786davycrockett
·1 year ago@12345jamesstamps
"I wish I can read real stories of those who got an audit and how it happened."
Okay -- how 'bout this one?
Before my first wife and I were married in 1968, she had had a part time job in a laundromat, while she went to high school.
A few years after we were married, the IRS sent us the form letter for an audit, questioning her income from that part-time job.
At the IRS interview, I pointed out to the IRS investigator that my wife had been a full-time high school student for the year in question, and that any wages from that period were the result of a part-time job.
The IRS chose not to pursue the audit any further, since the amount was too minor to pursue, considering that the minimum hourly wage at that time was only $1.25 an hour; and, as a high school student, my wife would have been earning less than minimum wage at that time, anyway.
So, yeah -- the IRS doesn't always go after the high-rollers, do they?
12345jamesstamps
·1 year agoIt was considered a job...heck I had a job at 16 washing dishes when I was in high school but I declared my job.
Having a 'job' is a title different than selling a pair of gym shoes I would think.
chapeau-noir
·1 year agoYes. I paid taxes (and paid into SS) even during the time that I was too young to have 'working papers' allowing me to work in my state. Because I worked for a family business (short order cook in a truck stop/diner) I was allowed to work younger than the age of 16 (I was 14 going on 15). Not sure how I would have avoided it, being that it was a jobby job, even if it was lower than minimum wage.
ETA: The owner was crazy - worst job I ever had, but that year I got a tax refund of $5!
stephenmorgan
·1 year agoThe 1099K is provided as required by law for certain activities. If you are earning income with an activity that there is no 1099K reporting requirements, example you made $7000 cash mowing lawns, well you are on the honor system to report your income. So how you could get in trouble is if someone reported you for you cash activity. It happens and it is often someone you know that reports you.
I am not even sure what you mean by this statement?
"I always break even on reporting sales and paying taxes but seems like a waste of time when one breaks even."
12345jamesstamps
·1 year agoDeductions(shipping supplies, etc) with income(sales) and usually don't owe anything...
Deductions are our best friend when we sell...so H and R Block tells me.
"It happens and it is often someone you know that reports you"....I only read about the rich doing that though...not Joe down the street who made $100. shoveling snow in the winter for someone.
redmodelt
·1 year agoYou still have to pay taxes on income, that does not change. Whatever the amount is, it is just the amount that will trigger an actual 1099 form.
dryophelia
·1 year ago@leboat1010
The final answer will be set about December 28. Keep an eye on the IRS site as it will be where the official announcement will be.
Continue to keep good records in case they raise the threshold and the form isn’t sent and you have to figure it all out without it.