Maybe over thinking this & making a big thing over nothing?

[rapidreplay]

Last year I sent a check for $10,000 to the IRS to pay my TAXES So no TAX CHEATING HERE. 

Me and my Wife were both shocked including my Accountant when we went to the mail box and found a refund check for $10,000 from the IRS.

Seems there was a law change and we  over paid. TRUE STORY. I was not happy paying that amount. But glad I was able to pay it, And did. So I don't feel like the IRS is really wanting to Monetarily hurt folks or stop little business.  They may even be more flexible on this.

 My new plan is to just take the total sells and claim 15 % of the total. The task of back tracking a bunch of old used items is just nuts and a waste of time for them and us. I just can't believe they would waste their time and money and payroll chasing pennies.

I sell just to fill in the gaps and maybe a nice meal out and stay active. and a few things I collect off eBay.  

I need to get motivative here. 

[wildpitchsports]

Do what ya need to do!

[ckimodog]

Wow!!!  Good for you.  👍

[jayjaspersgarage]

Edited.  Can't believe I fell for this.  I deleted my original response.

[luckythewinner]

---

@rapidreplay wrote:

Seems there was a law change and we  over paid.

---

What was the law change that resulted in the refund, and why wasn't your accountant aware of it?

---

@rapidreplay wrote:

 My new plan is to just take the total sells and claim 15 % of the total. The task of back tracking a bunch of old used items is just nuts and a waste of time for them and us. 

---

For 2022, eBay is going to send you a 1099-K for 100% of your processed payments, including the shipping paid by your buyers.

If you only report 15% of that, the IRS is going to send you a bill for the taxes on the other 85% of your sales.

Have you reviewed this plan without you accountant?

[jayjaspersgarage]

This was your old plan?

"DUE TO NEW RULES TO REPORT INCOME I have to add this information to this listing to keep track for 2022

Paid $20 ADDED With FINDERS FEE PLUS 1 HOUR Researching LISTING & TESTING / ADD extra 1/2 hour packing & Shipping.. USING U.S. Minimum  wage standards Total product and production cost is about 45 to $55 dollars after seller fees. "

Who files taxes by snail mail these days?

"when we went to the mail box "

You can try to walk back your previous posts but they are easy to find.

[rapidreplay]

Something to do with Obama Care.

That's my plan.. My only concern is will this be considered a WHITE COLLAR CRIME and they place us in that nice Federal resort prison? 

[rapidreplay]

Yes it was a bad plan and this board helped convince me it was foolish. So that plan is is now replaced with this new plan.

It's been nice kicking ideas around on here and getting other folks feeling and ideas and views. It helps, It's just post it notes of expressed views not in stone and helps change my views on what to do or handle things And I learned a lot here

WE LEARN AS WE ARE WRONG OR RIGHT.

DO AND SAY MORE RIGHT THINGS THEN WRONG THINGS IN LIFE AS WE ALL WILL DO BOTH.

JESUS FORGIVES  PEOPLE DON'T > Lets not make too much of post it notes. 

[dnasilver]

Good for you, but we would fire our accountant if they were not current on the tax laws. What happens next time when the IRS says you owe 100K and your accountant says "who knew they changed the laws"?

[rapidreplay]

Have you reviewed this plan without you accountant?

yes. And will be having that meeting soon. and I may need yet another plan?  

Maybe eBay can provide a bundle amount with their programs and keep it simple for mom and pop sellers Sort of a bucket program that deals with this and they send a tax amount from small sellers that join.

[soh.maryl]

Did you REALLY receive a Federal income tax refund of 10K?

What "law change" caused this to happen and why didn't your accountant know about?

If this story is true, then you need to invest some time between now and the 15th of April, 2022, finding a new accountant.  

[itsjustasprain]

---

@soh.maryl wrote:

Did you REALLY receive a Federal income tax refund of 10K?

What "law change" caused this to happen and why didn't your accountant know about?

If this story is true,  

---

Doubtful. I would at least update the story to talk about on-line payments and direct-deposit refunds. 

[rapidreplay]

My accountant is a Former IRS AGENT. And very good. 

The story is true. The amount was more like $9800 I rounded it off. My wife just retired early due to Covid concerns and ended up filing for Obama care for insurance. And it had something to do with a change in how that was paid or repaid or figured. That law changed and came into play after Taxes were filed. 

 I checked back with my Accountant before cashing it and he confirmed it. 

 There are so many laws that change so fast.  OVERSITE Maybe? 

[rapidreplay]

Calling it a refund may not be correct as They sent me a new check back returning my payment. 

So NOT A REFUND just returning A OVER PAYMENT!

[dq3141]

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@rapidreplay wrote:

Something to do with Obama Care.

---

OK, that makes sense. The ACA subsidy was massively increased in 2021. If you were over/underpaying, it gets taken care of at tax time.

Two thoughts:

1) Your accountant should have known about this

2) If you really had owed $10k, you should have been making quarterly estimated payments. There’s a penalty for not doing so.