IRS announces delay in new $600 1099-K tax reporting threshold

[sheila@ebay]

Please check out the 1099k reporting threshold announcement from December 29th, here. This announcement should cover the majority of 1099 questions.

Have more questions that aren't covered in the announcement? Please post your questions in this thread.

[stephenmorgan]

This could help to explain why IRS was ok with the 1099K delay.  They may be just too busy for more added workload.

IRS issues 12 million tax refunds after correcting 2020 returns

https://www.yahoo.com/finance/news/irs-issues-12-million-tax-refunds-after-correcting-2020-returns-2...

[pburn]

I'm sure it's discouraging for the IRS to have to spend all that money and time correcting returns and issuing refunds because taxpayers couldn't manage to fill them out correctly in the first place. If it had been the IRS's fault in the first place, that would be one thing, but having to go back over those returns because the taxpayers didn't do it right? Doesn't seem right.

[toomuchstuffagain35]

From the article, most of those corrections were due to the $10,200 exemption on unemployment income which went into effect after taxpayers had already filed returns.

Not exactly the taxpayer's fault.

[pburn]

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@toomuchstuffagain35 wrote:

Not exactly the taxpayer's fault.

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Well, certainly not the IRS's fault.

[toomuchstuffagain35]

Agreed. We can blame the govt for not deciding on the exemption sooner.

Personally I don't agree with the exemption, but that's not my call.

[stephenmorgan]

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@pburn wrote:

I'm sure it's discouraging for the IRS to have to spend all that money and time correcting returns and issuing refunds because taxpayers couldn't manage to fill them out correctly in the first place. If it had been the IRS's fault in the first place, that would be one thing, but having to go back over those returns because the taxpayers didn't do it right? Doesn't seem right.

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?

[pburn]

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@stephenmorgan wrote:

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@pburn wrote:

I'm sure it's discouraging for the IRS to have to spend all that money and time correcting returns and issuing refunds because taxpayers couldn't manage to fill them out correctly in the first place. If it had been the IRS's fault in the first place, that would be one thing, but having to go back over those returns because the taxpayers didn't do it right? Doesn't seem right.

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?

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If you have a question, please present it.

[chilie68]

Just had to give input on this statement.  Blaming taxpayers for not doing taxes right is rather uninformed.  The 1.9 Trillion American Rescue Plan was enacted March 11, 2021 and included an exclusion of $10,200 of unemployment benefits subject to federal taxation for the 2020 tax year. Millions of Americans had already filed their 2020 taxes paying TAX on this $10,200. Not the IRS employees fault either. They are hard working people, following orders just like the rest of us. Congress is where the blame lays. 

[cashmeredelight]

of course I'm aware of this as husband is an IRS agent. Boy do I hear lots of crap that goes on

[stephenmorgan]

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@chilie68 wrote:

Just had to give input on this statement.  Blaming taxpayers for not doing taxes right is rather uninformed.  The 1.9 Trillion American Rescue Plan was enacted March 11, 2021 and included an exclusion of $10,200 of unemployment benefits subject to federal taxation for the 2020 tax year. Millions of Americans had already filed their 2020 taxes paying TAX on this $10,200. Not the IRS employees fault either. They are hard working people, following orders just like the rest of us. Congress is where the blame lays. 

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Thank you for your input and I agree that "Blaming taxpayers for not doing taxes right is rather uninformed."

I myself do not see that there is reason for Blame being placed anywhere.  Blame for what?  Congress authorized a retroactive benefit, people will receive this new benefit and IRS has been correcting returns to complying with the law as the article states.  

I thought the article was a indication of how overwhelmed IRS has been.  They may not have been well prepared to deal with an influx of 1099K's so they waivered the newly enacted law for a year.  Just a guess on my part.

[jackinthebox94]

My payouts are still on hold. What gives?

[shallow_karl]

I'd predicate this re-taxing of previously sold on the Democrats cutting SPENDING for once. 

https://www.usdebtclock.org/

[pburn]

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@shallow_karl wrote:

I'd predicate this re-taxing of previously sold on the Democrats cutting SPENDING for once. 

https://www.usdebtclock.org/

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@shallow_karl 

I have no idea what you're posting about or what "re-taxing of previously sold" means or or what your comment has to do with the issuance of a Form 1099-K or why you're replying to my post, since it has nothing to do with your response.

[slippinjimmy]

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@shallow_karl wrote:

I'd predicate this re-taxing of previously sold on the Democrats cutting SPENDING for once. 

https://www.usdebtclock.org/

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1 - Sales Tax rates and what goods they apply to are set by the States

2 - Sales Tax was introduced during the 1930's depression

3 - No states that I am aware of have an exemption for general used goods

4 - Sales Tax is exactly what it says, a tax on SALES other than itemized exemptions (food primarily) the condition (new/used) is irrelevant.

5 - Sales Tax has been introduced and modified by State Governments many times over the past 90 years, surely some of those State Governments were controlled by Republicans who could if they wished to modify the rules.....do you have any examples that would confirm your allegation that it's only Democrat controlled States that increase Sales Tax rates or the items they apply to.

I'll wait for your answer!

[pburn]

Just adding that sales tax, as a tax levied by states rather than the federal government, is different from income tax and, therefore, has no relation to the Form 1099-K, which is the topic of this thread. Its assessment and collection has no impact whatsoever on the federal debt (to which I assume that link relates).