New 1099-K reporting guidelines.

[lightlily_arts]

Recently I responded to eBay’s request to message my congressional representatives regarding the change in 1099-K reporting.   This is the response a received from my US Senator Representative.

“Thank you for writing to share your concerns regarding a proposal to reform Internal Revenue Service reporting practices. I appreciate hearing from you.

According to a March 2021 study by the National Bureau of Economic Research, the top one percent of earners fail to pay approximately $175 billion that they owe each year. Under his “American Families Plan,” President Biden has proposed revitalizing enforcement of the federal tax code to ensure that the wealthiest Americans actually pay what they owe. This plan includes a proposal to require financial institutions to report information on account flows so that earnings from investments and business activity are subject to independent reporting just like wages already are.

I deeply value Americans’ privacy and the responsibility financial institutions have in protecting their customers’ financial data. I also believe it is important to close the gap between taxes owed and taxes paid to ensure wealthy individuals are paying their fair share.”

I seriously doubt that this tax change will actually impact the so called wealthiest Americans.   Instead it will be a burden for individuals selling off their personal items to make ends meet.  Although I agree that all income should be reported the $600 threshold is a joke.   I found the senators response even more annoying when our current president used S Corporation tax loopholes to avoid paying 500K in taxes.  

I recently received a notice from Facebook regarding the new tax law reporting requirements.
I don’t know how many people who sell personal items locally through Facebook for cash actually get their asking price. When you delete a listing Facebook asks if it sold and whether it was on their site. So how is Facebook going to track cash payments?

[downunder-61]

They can't I guess, unless some legislature comes in and requires them to sell using PP or some other payment method similar to other platforms.

As it is they have no way of knowing if you sold it, lost it, broke it, or just decided to keep it for yourself when you delete the item from the page.

It will be interesting to see what happens in the future with Facebook and thanks for the very informative post.

[beautifulbeauty2012]

Meanwhile, those who created that law, get richer every day. Nancy Pelosi earns tens of millions on stock trade every year - you`d think how is it possible to have a mouse in charge of cheese? She and her friends think it is ok to regulate the market, have an access to insider information, and take advantage of it. And you, sheeple, pay taxes on $600 and shut up. 

[chapeau-noir]

Baaaaaahhhh...

[beautifulbeauty2012]

I just checked who is your congresswoman - looks like one of Nancy`s buddies...

[chapeau-noir]

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@beautifulbeauty2012 wrote:

I just checked who is your congresswoman - looks like one of Nancy`s buddies...

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You need to understand this.  We have been supposed to have been honest and pay our taxes under BOTH administrations.  Try all you want to make political fodder out of this, but IT'S THE LAW.  You got problems with the wealthy?  Then direct your ire towards them, not so-called 'sheeple' who are simply paying their taxes like honest Americans.

[beautifulbeauty2012]

I don`t have problems with wealthy people who EARNED their money the honest way. Looks like you are the one who has a problem with honest rich people, but fine with the Nancy type. 

[perfumenmore]

This is so short sighted on the part of the Democrats. Right now, states collect taxes on items that sell. A lot of people are going to pull their items when they near the $600 threshold. That means a lot of revenue that states collect on these sales are not going to happen and they are going to lose a lot of money. Also, all the money that is going to be wasted policing people they think are tax cheats. If you sell 10K a year and get audited and can prove that you purchased the item and took a loss on it, money is being wasted by the IRS. After all, they have to pay these IRS employees who are going to be doing the auditing. And for what? Someone they think may have failed to pay tax on a few K?  Really?! Hard to believe how stupid these people are. More amazing is that anyone actually voted for them.  If they really cared about revenue, they should close our borders and stop handing out $2500 gift cards to illegal aliens, housing them in hotel rooms while Americans are sleeping on the streets, and paying religious organizations and NGOs billions to break our laws by bringing them here. This isn't about money. It's about giving the shaft to American citizens. 

[beautifulbeauty2012]

Yeah, you can actually see those who voted for them right here, on the board. Propaganda is the greatest invention ever.

P.S. so refreshing to see people with brain and common sense such as yourself here.

[chapeau-noir]

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@beautifulbeauty2012 wrote:

I don`t have problems with wealthy people who EARNED their money the honest way. Looks like you are the one who has a problem with honest rich people, but fine with the Nancy type. 

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The ad hominem rebuttal?  Already?  That was quick. 😣

Love your country.  Pay your taxes.  That's all I have to say.

[beautifulbeauty2012]

You need to preach that to your president and the rest who hate America so much and destroying it. 

[chapeau-noir]

Love your country.  Pay your taxes. 

[kh-jean]

Hi everyone,

Since this thread has gotten a bit off-topic, please bring the discussion back to subject established in the original post.

Thank you.

[downunder-61]

Perhaps Soapbox,  OP started a good thread and then..........

https://community.ebay.com/t5/The-Soapbox/bd-p/2124

[luckythewinner]

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@lightlily_arts wrote:

I recently received a notice from Facebook regarding the new tax law reporting requirements.
I don’t know how many people who sell personal items locally through Facebook for cash actually get their asking price. When you delete a listing Facebook asks if it sold and whether it was on their site. So how is Facebook going to track cash payments?

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Facebook is not required to track or report cash payments. 

The 1099-K reporting requirement is for payment processors to report payments they processed. If Facebook did not process a payment on your behalf, then they do not report it on a 1099-K. 

The same is true if an eBay buyer pays cash for local pickup. If Managed Payments did not process payment, nothing gets report on the 1099-K. 

The 1099-K reports the dollar amount of payments processed, not the dollar amount of items sold.