IRS just delayed the $600 reporting rule again for this year.

[the_fancy_fox]

I just saw it on my news feed. 

[bryo_3145]

"I could have sold more items this year." 

[krazzykats]

I read it had something to do with ticket sellers, who would have caused a flood of paperwork due to selling one Taylor Swift concert ticket or the likes.

One ticket sale could make it over the old $600 limit.

[asset_liquidators]

Yep, they will be pointing right to it and saying "see, the IRS says I don't have to report my income." lol

[fern*wood]

If folks couldn't figure out the paper work in two years, what makes them think another year will help?

[krazzykats]

Because the IRS still needs to figure it out themselves before they can tell us!   LOL! 

$600 was too low and it took them until now to figure it out. 

The IRS can't handle the additional paperwork for the occasional one-off sales that exceed $600.

[rustydalmatian]

Yep.  I was wrong.  I had a moment of euphoria and wasn't thinking.  It's the dog house for the dalmatian☹️.

[onefootflippers]

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@slippinjimmy wrote:

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@farmalljr wrote:

Why in the world is the IRS interested in cow towing to tax cheats?

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They are not cow towing to tax cheat (tax cheats get a collateral benefit), they are  cow towing to the corporate lobby (The Marketplaces) that lost lots of money (sellers gone, sales gone, fees gone) when 1099K first were introduced. Then when the thresholds were going to go to the $600 level they new this would cause even more sellers to limit their selling, either overall or by spreading the revenue over multiple sites.

I don't believe for a minute that eBay has an interest in reducing the number of tax evaders. Administering the issuing of 1099K's is not onerous, sure it takes some money, millions no doubt even it is only $1 or $2 per 1099. Even then they are required to establish the process and administer with no real difference in cost be it reporting 3 Million accounts or 6 million accounts.

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I think the cost actually rounds down to zero for any seller not requiring a paper copy. It is just a report that the ebay backend software can generate in a fraction of a second. It costs ebay no more money to generate that report than it does to generate any of the countless reports you can get in seller hub.

[ms_m91]

Legally, I have to report my Ebay earnings on my tax form. Even if my earnings were only 11 bucks. Doesn't matter if I receive a 1099-K or not.

Senator Sherrod Brown of Ohio seems as clueless as everyone else...

December 01, 2023

Sen. Brown Cuts IRS Red Tape for Ohioans with Online Businesses

Without this delay, online sellers and small businesses would be required to complete a 1099-K tax form for any transactions over $600 starting in January, creating more red tape for Ohioans.

Many online sellers are entrepreneurs trying to get their small business off the ground, which is difficult enough on its own. And in an economy where corporations still refuse to pay workers what they’re worth and hard work doesn’t pay off for too many Ohioans, it’s not a surprise that people use sites like E-Bay and Etsy to earn a little extra income. These Ohioans shouldn’t have to wade through excessive tax paperwork.

That’s why earlier this year I introduced the bipartisan Red Tape Reduction Act to permanently raise the threshold for when online sellers receive these tax forms from $600 to $10,000.

As we work to get this bill passed, we’ve been pressing the IRS to delay the implementation of the $600 reporting threshold.

I brought this up with the IRS Commissioner at a hearing and demanded they delay this as we work on a permanent fix. Last week, we got word that the IRS is bowing to pressure and keeping the higher threshold in place for another year. This is welcome news for small businesses across Ohio who were about to be hit by this excessive paperwork right after the holiday rush.

We need to provide these Ohioans certainty by passing my bipartisan bill to write the higher threshold into law, and permanently protect Ohioans from this excessive, and often unnecessary, paperwork.

It’s simple: Ohioans who rely on their online businesses don’t want the threshold lowered. If a rule is so unpopular and hard to enact that you have to keep delaying its implementation over and over, it’s probably a sign it shouldn’t be law in the first place.