The IRS is coming for YOU!

[mrfindit]

Joe Biden already signed into law the stimulus bill that requires E-Bay to report your sales to the IRS if you make $600 a year or more in sales.

Now Democrats are about ready to pass legislation (passed the Senate already) that will authorize the IRS to hire 87,000 more agents.  They say it is to go after billionaires who aren't paying their fair share!  There are only 700 billionaires in the USA.  You don't need 87,000 agents to go after 700 people!

The real reason they want to hire 87,000 agents is so they can go after YOU!  Those agents are going to be going after all you E-Bay sellers who aren't correctly reporting your 1099 or keeping the correct records!  Then even if you are only off a little, they will hit you with fines and penalties to jack up how much you have to pay the IRS. 

These two bills aren't a coincidence, they are a plan!  Regardless of your political party, if you sell on E-Bay you better be contacting your House representative and demand they vote down the Inflation Reduction Act.

No one was paying attention when they snuck in the $600 1099's, but you better pay attention now or they will be sneaking in 87,000 IRS agents whose job is to come after you!

[dbfolks166mt]

Thank you for this! Yes I filed mine as a S corp so any profit or "income" would go on my personal tax return. It's cheap in Texas with less steps compared to other states. It was only $308 to file in Texas but some states it can run up to over $1,000 with yearly fees on top of it.

Always do what's best for you as every situation may differ from person to person. 

Agreed. .I am not a high volume seller so I simply do the schedule C, report the gross and deduct the expenses, pay taxes on the net. 

I just think for those uninformed or unaware (or in denial) it's going to be tough sledding for them in Q1 2023.   

I have always reported my income and paid my taxes. I am also one of the lucky ones that lives in a state, Virginia, who implemented lower 1099 reporting thresholds three years ago. Since I have always reported my income I found the 1099 to be a blessing in a way. I always reported my income based on my own books and accounting. I find the 1099 to be useful in validating/verifying those numbers. 

Most of these people will probably file like normal, get their money and then get the 1099K after.

There is a good probability that that may happen and they will end up doing an amended return. There is also the concern that eBay may botch the distribution of the 1099's like they did last year when they issued all the 1099's to the CA sellers. The funny, or not so funny, ones were the people that received the 1099's and had never sold anything on eBay. 

Hope they don't ignore it like some here have suggested because you betcha one of those IRS agents will find them and we know how that goes.

O the IRS automated software will catch those in a heartbeat. I had forgotten that I had received the last stimulus payment and neglected to report it on my taxes. The IRS found that almost instantly, reworked my taxes for me and adjusted my return. 

[dbfolks166mt]

LOL.

Yes, I know the answer, but I was seriously questioning whether the poster knew/knows the answer. The post in question doesn't really hold water if one actually knows how retirement/disability benefits work. 

When one reaches full retirement age, for example, one can earn any amount without loss of benefits. Full retirement age ranges from 66 to 67 years old. Unless a person is retiring earlier than that, any earnings from eBay are moot. Also, only NET earnings from self-employment (which would include selling on eBay) are considered.

My point is--or was--to have the member who made the statements do that research him/herself in order to learn that the statements regarding the loss of social security benefits would not have the impact s/he was trying to imply. I should have posted using the "subtle, read between the lines" font.

Ah, silly me. Having read some of your postings I should have known that. 😁

[katz.paw]

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@nuclearomen wrote:

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@katz.paw wrote:

Wow - that rant (message 84) tangented into a litany of various off-the-subject grievances.
To stay on subject, my post was responding to mrfindit who seems to imply the IRS is hiring 87,000 more agents, "to go after YOU!" (Caps and exclamation his.)
That is the alarmist message being parroted around by some, but the actual figures are more nuanced than that.
Time magazine may lean left of center, but it is highly regarded for factual and accurate sourced reporting.
Full Time article here: https://time.com/6204928/irs-87000-agents-factcheck-biden/

---

yeah, and was all needed to be said. You say "off subject" but it isn't, it's all connected - what do you believe "Climate" means and involves? Banning Straws? I know what you were replying towards and what you replied isn't correct either. Time mag is left - not partially - fully. There was a time long ago they where more neutral - that time certainly is not now! Again, they took their information from the guy hired by Biden admin to and I quote again "to beef up the IRS’s auditing power". No other source for their claim it's not true - lol, it's a load of crock with a message that is being repeated on all the left media source to the exact T - as always. 

---

lol - the "guy hired by the Biden administration" you state is actually a woman, Natasha Sarin, Harvard grad and not exactly a favorite of progressives.

 And I would guess that whether Time is "left - not partially - fully" or not depends on where one looks at it from their own political leaning.  Most I see rate it as leaning left of center, but again it is highly regarded for factual accuracy.

[simba6]

The tax was always owed. It was they never bothered to go after those pennies.   

[a_c_green]

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@mrfindit wrote:

The real reason they want to hire 87,000 agents is so they can go after YOU!  Those agents are going to be going after all you E-Bay sellers who aren't correctly reporting your 1099 or keeping the correct records!  Then even if you are only off a little, they will hit you with fines and penalties to jack up how much you have to pay the IRS. 
[...]
No one was paying attention when they snuck in the $600 1099's, but you better pay attention now or they will be sneaking in 87,000 IRS agents whose job is to come after you!

---

Apparently not. This quoted excerpt of a letter from Janet Yellen of the Treasury to IRS Commissioner Charles Rettig says otherwise: 

“Specifically, I direct that any additional resources—including any new personnel or auditors that are hired—shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” Yellen wrote in the letter to Rettig. “This means that, contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited.”

Enforcement resources, Yellen said, will instead “focus on high-end noncompliance.”

Ref: https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html 

[stacy_1971]

Banks have to report anything over $5,000.00  I know because I once saved up about $6,000.00 in cash, and my dad made me deposit it into the bank... he was worried about it being cash in my home.  When I deposited it into a bank, they explained that to me 🙂  

[luckythewinner]

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@a_c_green wrote:

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@mrfindit wrote:

The real reason they want to hire 87,000 agents is so they can go after YOU!  Those agents are going to be going after all you E-Bay sellers who aren't correctly reporting your 1099 or keeping the correct records!  Then even if you are only off a little, they will hit you with fines and penalties to jack up how much you have to pay the IRS. 
[...]
No one was paying attention when they snuck in the $600 1099's, but you better pay attention now or they will be sneaking in 87,000 IRS agents whose job is to come after you!

---

Apparently not. This quoted excerpt of a letter from Janet Yellen of the Treasury to IRS Commissioner Charles Rettig says otherwise: 

“Specifically, I direct that any additional resources—including any new personnel or auditors that are hired—shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” Yellen wrote in the letter to Rettig. “This means that, contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited.”

Enforcement resources, Yellen said, will instead “focus on high-end noncompliance.”

Ref: https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html 

---

We don't need little things like facts to get in the way of reckless speculation. What's the fun in that?

[12345jamesstamps]

Not sure what you are trying to say. Let's just say more people will be getting a 1099K at end of this year than last year. 

If you win $1200.00+  in a Vegas casino usually you would get a 1099K to report that as income last year and needed to give your social security number. Working in casinos for years this I know. But you have deductions like sellers do on eBay.

In a Wall Street article it stated you will get a 1099K if you sell more than $600. on eBay. I also read (and maybe you didn't yet)that  includes Pay Pal as well as Airbnb and others. Perhaps you haven't read as much as me but it does include Pay Pal, Airbnb and such. 

It takes about 3+ years for the IRS to find if you didn't pay taxes on a 1099K. This doesn't happen overnight.

There are many people who ignore those 1099K 's they get from jobs and don't care to pay taxes on them.

With deductions that can be done but many people blow it off. 

So you get 3+ years of interest on that from the IRS. IRS will probably not do anything for a few years.

[dugoldstuff]

I do want to add, not response to the above but from other posts - the bill passed 51-50 in the senate - the 51 breaker was made by Harris - NO republican voted for this bill - not one - look it up. 

They won't look it up! And even if they did, they still wouldn't admit the facts. 

[nuclearomen]

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@katz.paw wrote:

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@nuclearomen wrote:

---

@katz.paw wrote:

Wow - that rant (message 84) tangented into a litany of various off-the-subject grievances.
To stay on subject, my post was responding to mrfindit who seems to imply the IRS is hiring 87,000 more agents, "to go after YOU!" (Caps and exclamation his.)
That is the alarmist message being parroted around by some, but the actual figures are more nuanced than that.
Time magazine may lean left of center, but it is highly regarded for factual and accurate sourced reporting.
Full Time article here: https://time.com/6204928/irs-87000-agents-factcheck-biden/

---

yeah, and was all needed to be said. You say "off subject" but it isn't, it's all connected - what do you believe "Climate" means and involves? Banning Straws? I know what you were replying towards and what you replied isn't correct either. Time mag is left - not partially - fully. There was a time long ago they where more neutral - that time certainly is not now! Again, they took their information from the guy hired by Biden admin to and I quote again "to beef up the IRS’s auditing power". No other source for their claim it's not true - lol, it's a load of crock with a message that is being repeated on all the left media source to the exact T - as always. 

---

lol - the "guy hired by the Biden administration" you state is actually a woman, Natasha Sarin, Harvard grad and not exactly a favorite of progressives.

 And I would guess that whether Time is "left - not partially - fully" or not depends on where one looks at it from their own political leaning.  Most I see rate it as leaning left of center, but again it is highly regarded for factual accuracy.

---

doesn't matter if it's a guy, woman, goat or any other possible identity people take these days. The point is Time used them as their only source, didn't even try to get other professional looks at it. Person who only job is to get IRS more power and funding for audits...not sure what part of that you don't understand(?) who works for biden admin - who literally has said various times "pay your fair share" - coming from biden of all people lol. Time is not factual - you obviously don't even read it or would know they are full of crock on many things they publish as "news" - fact is taking quotes from one source "media" outlet and coming to the board and pasting it in doesn't make it factual because you say it is. The ladies at The View think their horse wash is factual too yet everyone knows it's not. You can believe all that bull Time fed you but that's exactly what it is. It doesn't take 80 billion to hire new employees lol. 

[thekittyshop]

"Yellen directs IRS not to use new funding to increase chances of audits of Americans making less than $400,000"
https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html

[katz.paw]

🙄

That was not their "only source" in the article. Geeezz

[turquoisetulips]

Agreed 

[bbravo65]

...time to pay back $2K Covid-19 stimulus money folks...it's not free...!!!

(not even mention the extra $600/week from Unemployment Benefits during that pandemic...)

...a short-term loan from our government to American citizens...

[stephenmorgan]

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@thekittyshop wrote:

"Yellen directs IRS not to use new funding to increase chances of audits of Americans making less than $400,000"
https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html

---

With many people filing online, even if using a paid preparer, computers are very good at finding income that is mismatched as far as what is reported to IRS by payor and payee. 

Once a computer identifies a mismatch I think it will be a automated process of sending someone a notice.  This notice is a audit.  I can not see IRS having a known income discrepancy and not following up on it.  These are easy audits that people will have an appointed to correct and many will once notified.

As for filings that are out of the parameters IRS has set for a audit, maybe and just maybe these type of audits may not increase.