1099K

[5kidsports01]

I am looking at my total sales for this year - what number does Ebay use to report to the IRS ?  do they use -- Total sales (Includes taxes)    or    Net sales (Net of taxes and selling costs) ???  i am over transactions -200 but not sure what number to use so i do not go over the 20,000 threshold....  thanks ... 

[carbideliquidator]

I think congress still plays a part in this, some in congress would like to repeal the $20,000 and under reporting, along with all bank transactions....but congress is broke, unable to function so I wouldn't count on them....going forward, it's going to be a year to year policy making by IRS as it stands

[mam98031]

---

@carbideliquidator wrote:

I think congress still plays a part in this, some in congress would like to repeal the $20,000 and under reporting, along with all bank transactions....but congress is broke, unable to function so I wouldn't count on them....going forward, it's going to be a year to year policy making by IRS as it stands

---

They likely due.  

But the Bank transaction threshold is a completely separate issue and their efforts to reduce the $$ value of transactions reported to the IRS failed a long time ago.  It has been and still is $10,000.

[carbideliquidator]

I thought that was all part of the recovery bill pass in congress 2021 or 2022 ?....both were under the same bill, I thought

[mam98031]

---

@carbideliquidator wrote:

I thought that was all part of the recovery bill pass in congress 2021 or 2022 ?....both were under the same bill, I thought

---

Nope!  I honestly don't know if it was edited out or if it was its own bill.  I just know it didn't pass.

[carbideliquidator]

Good to know....but in my opinion, I believe AI is going to play a big part in collecting taxes in the near future....instead of an IRS agent questioning your tax return....an AI program will evaluate your return, send you a tax bill in the mail for unreported income.....it will then be up to you to challenge, or just pay.

[dbfolks166mt]

Good to know....but in my opinion, I believe AI is going to play a big part in collecting taxes in the near future....instead of an IRS agent questioning your tax return....an AI program will evaluate your return, send you a tax bill in the mail for unreported income.....it will then be up to you to challenge, or just pay.

     O we are already there and have been for some time. I have gotten those in the last couple of years bills sometimes, checks in other cases. Audits will probably still be face to face. 

[dbfolks166mt]

I thought that was all part of the recovery bill pass in congress 2021 or 2022 ?....both were under the same bill, I thought

     The change to the 1099 issuance threshold was part of the American Rescue Plan Act of 2021. The bill to try and change the deposit reporting level to $600 was part of the Social Policy bill started by the Biden administration and the Democrats. The Social Policy bill did not pass when Republicans and other groups, primarily the banking lobbyist, raised concerns and issues about invasion of privacy and government overreach. 

American Rescue Plan Act of 2021

[dbfolks166mt]

I think congress still plays a part in this, some in congress would like to repeal the $20,000 and under reporting, along with all bank transactions....but congress is broke, unable to function so I wouldn't count on them....going forward, it's going to be a year to year policy making by IRS as it stands

     It will be interesting to see what the individual states do in 2024 as well. There are already 8 states with their own 1099 issuance level laws on the books and nothing the Federal Government does can or will change those. Other states are already aware of the potential income loss given the Fed's inability to get their act together. I would not be a bit surprised to see several other states pass their own 1099 issuance thresholds and make it retroactive back to 1 January 2024. It's going to be an interesting year. 

[carbideliquidator]

Yes audits will probably still be face to face......but they will be very specific......no more throwing a box full of receipts on the auditor's desk ....it will be more like prove this !......I've been there, done that...in most cases, just write a check and move on

[slippinjimmy]

---

@carbideliquidator wrote:

Good to know....but in my opinion, I believe AI is going to play a big part in collecting taxes in the near future....instead of an IRS agent questioning your tax return....an AI program will evaluate your return, send you a tax bill in the mail for unreported income.....it will then be up to you to challenge, or just pay.

---

Old news! AI, less sophisticated than what is becoming available today has been used by the IRS for years. If you file a tax return and forget to include one tax slip for a small amount the IRS will know it and reassess your return. They are not finding these small error/omissions by using humans to check your return.

I get a laugh that AI is the hot thing du jour as if it was just invented yesterday when the reality is that it has been in use for decades. I was involved in a accounting software startup in the early 1980's, we used a rudimentary form of AI at that time.

There is a brief history of AI at this link that follows the progress from the earliest days in the mid-1950's up to 2017.

https://sitn.hms.harvard.edu/flash/2017/history-artificial-intelligence/

[mr_lincoln]

---

@slippinjimmy wrote:

---

@carbideliquidator wrote:

Good to know....but in my opinion, I believe AI is going to play a big part in collecting taxes in the near future....instead of an IRS agent questioning your tax return....an AI program will evaluate your return, send you a tax bill in the mail for unreported income.....it will then be up to you to challenge, or just pay.

---

Old news! AI, less sophisticated than what is becoming available today has been used by the IRS for years. If you file a tax return and forget to include one tax slip for a small amount the IRS will know it and reassess your return. They are not finding these small error/omissions by using humans to check your return.

I get a laugh that AI is the hot thing du jour as if it was just invented yesterday when the reality is that it has been in use for decades. I was involved in a accounting software startup in the early 1980's, we used a rudimentary form of AI at that time.

There is a brief history of AI at this link that follows the progress from the earliest days in the mid-1950's up to 2017.

https://sitn.hms.harvard.edu/flash/2017/history-artificial-intelligence/

---

@slippinjimmy   In the world of machinery and allowing them to make automatic adjustments based on production changes we called it "Fuzzy logic" but in basic terms it would be considered a form of AI ... this goes back to the early '80s. 

[carbideliquidator]

Forms of AI has been around my entire life (Forms of it)....from early automation from the telephone lady at a switchboard, to earliest IBM computers, to the industry I'm in involved in...CNC Machinery....primitive AI should not be confused with what they are working on now.......Todays AI involves self-thinking, self-decision making intelligence....it's no longer just AI working around a set perimeter..... it will replace many jobs in near future , cure many illness, but will also be used for evilness (Wars) and (Terrorism)....think of it as the very first personal computer (maybe Tandy) to where PC'S are today and cell phones and it's technology......AI will change the world......question is, for the better or worse ?

[mam98031]

It is recently been picking up steam to cyber bully people.  Some pretty serious stuff too.  It is sickening how damaging this can be.

What we need is the Congress to wake up and do their jobs.  We should have some serious regulations on AI.  One of them being against Cyber bullying.

[carbideliquidator]

Congress ?....Good luck with that

[winterpalace25]

My thoughts exactly. If profit is over $400.00, add one more page for SE tax, and maybe one more for depreciation.  A sales report for figuring taxes may be 20 pages, but not a 1040.