IRS

[55nitrocowboy]

Who else has to stop selling here because of the new federal tax rules,Biden hiring 87,000 New IRS agents. I'm scared to death .....

[ebooksdiva]

What's to be afraid of? Just file your taxes as you should have been doing all along as any monies received from selling is income and that income should be reported in your taxes every year whether it's $6 bucks or $600 bucks. And if you make deductions for selling costs like shipping labels, ebay fees, milage, ink paper and packaging materials, and of course internet payments. You may not have anything to payout. 

So ...Biden is hiring more staff doesn't mean anything. Just means hewants to replace those who are on vacation, quit, or retired.  Not that he will find that many to hire all at once. Seriously nothing to be scared about.

The new tax laws hasn't stopped me from selling. 

[mtgraves7984]

Ehhh... the chances they'll come for you are still pretty low. Relax...

[t-bone543]

Sorry, but I have to ask: do you have a reason to be scared?

[the_fancy_fox]

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@55nitrocowboy wrote:

Who else has to stop selling here because of the new federal tax rules,Biden hiring 87,000 New IRS agents. I'm scared to death .....

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Why? I’m not. On the 1099 you will get you have to account for all the money reported on your taxes. 

You will write off a significant portion of money with shipping costs, fees, packing material, mileage deduction, etc.

if your selling personal items there are ways to report that as well (personal items sold at a loss are not taxable). 

if you don’t know how to do your taxes, take them to a professional the first time so you can see how it’s done. 

Save every receipt (expanding file folder) and log a record of every expenditure. I log everything into a excel spread sheet.  

My taxes get a bit complicated since I am liquidating two estates I inherited along with commission sales and items I create. 

since items like bubble wrap I buy in bulk, my spread sheet shows how many feet are used in a box since I can not deduct the cost on my personal not taxable (inherited items) sales vs commission and business sales which I can. Same with boxes I buy. 

long as you have proof of everything you have done, your fine.

[inhawaii]

It's not 87,000 new IRS agents.

The landmark $750 billion Inflation Reduction Act signed into law by President Joe Biden on Aug. 16 earmarks about $80 billion for the IRS to hire as many as 87,000 employees. But how the agency will use that money is not finalized. 

The 87,000 figure comes from a year-old Treasury Department assessment of how  many full-time equivalent positions could be funded with the roughly $80 billion. Any additions will come as an expected 50,000 people are on track to retire in the next five to six years.

[mtgraves7984]

It's not 87,000 new IRS agents.

@inhawaii 

I heard on the radio yesterday that it's 867,530,9 new IRS agents. Or maybe that was about something else. 🙄

[dbfolks166mt]

     Not really worried since I have always paid my taxes on income. I am also in a state that changed the reporting threshold on the 1099's back in 2020 so I have been getting those for awhile. Since I have always paid my taxes I pretty much welcomed the 1099 since it was a sanity check against my own book keeping records. 

     As for the IRS budget increase in the Inflation Reduction Act that may or may not withstand the test of time. The Federal Budget is proposed, approved and signed into law on a yearly basis. The budget and position additions could easily evaporate very quickly as they have done in the past. While the act may stand on it's own the IRS's annual budget appropriations do not. The president may submit $xx in his annual budget proposal but Congress will mark up the proposal till they are able to reach an agreement on passage before it is signed into law. Congress could just as easily reduce the IRS budget in coming years by what the act gave it and even more. 

[m60driver]

Rest assured the IRS is unlikely to come after someone with gross Ebay sales of under $20K.  Just be honest and report a reasonable net profit.  If you don't report an honest amount of net profit then it might trigger a red flag.  

[maxine*j]

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@55nitrocowboy wrote:

Who else has to stop selling here because of the new federal tax rules, Biden hiring 87,000 New IRS agents.  I'm scared to death .....

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I suppose some denizens of the underground economy -- tax dodgers, sellers of stolen merchandise, money launderers, foreign nationals working unlawfully, general scofflaws -- who have been selling on eBay will leave if the new 1099K reporting requirement shines light on their activities.

But for all the regular folk here, nothing has changed with the new reporting requirement because they have always reported their eBay income, dependent upon their filing status, and paid the taxes, if any, due. 

All the regular folk here who are unsure if getting a 1099K will affect them in any way, will simply go to a tax preparer, maybe using any of the many free services available for those with lower incomes, to find out if there's anything new or different they need to do at tax time if they get a 1099K.

So if you're scared to death... 

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[nobody*s_perfect]

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@maxine*j wrote:

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@55nitrocowboy wrote:

Who else has to stop selling here because of the new federal tax rules, Biden hiring 87,000 New IRS agents.  I'm scared to death .....

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I suppose some denizens of the underground economy -- tax dodgers, sellers of stolen merchandise, money launderers, foreign nationals working unlawfully, general scofflaws -- .... So if you're scared to death...  

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I think that's the answer to the OP's question: Scofflaws.

[simba6]

Those taxes were always owed. It's just that is was not cost effective to collect those pennies.  All those new agents will be just as confused about the tax rules as everyone else. 

[katzrul15]

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@55nitrocowboy wrote:

Who else has to stop selling here because of the new federal tax rules,Biden hiring 87,000 New IRS agents. I'm scared to death .....

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I'm not.

Been paying taxed owed from online sales since 2005 for 2004 selling.

If you pay your taxes, why fear the IRS?

[silverstatetreasureboxes]

@55nitrocowboy 

You cannot live being scared to death over this issue. My neighbor is retired from IRS, and while she stated the equipment used currently was in poor shape when she retired 22 years ago. 

     As far as hiring qualified agents go, good luck to them.

     You must be proficient in math as well as social skills and training will be extensive and time consuming for the applicant. Now, how many folks would .........( sorry, I'm laughing too much)

     Like poster @m60driver  stated

Just show a reasonable profit on your items, keep good records and receipts. I personally don't deduct home office or mileage but of course it works for larger fish not me.

    Please just continue to enjoy your selling and remember you can make a difference in your vote come November.  Best to you.

[m60driver]

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@silverstatetreasureboxes wrote:

I personally don't deduct home office or mileage but of course it works for larger fish not me.

    Please just continue to enjoy your selling and remember you can make a difference in your vote come November.  Best to you.

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Deducting a home office is, at least according to my former CPA for my business, a red flag issue best to be avoided.  Not so much mileage which is one of my biggest expenses sourcing product.