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 01-06-2022, 02:37 PM | #1 |
lamboguy Registered User Join Date: Sep 2007 Location: Boston+Ocala Posts: 23,599 | IRS and cash deposits to financial institutions |
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| 01-06-2022, 02:42 PM | #2 |
boxcar Registered User Join Date: Oct 2001 Posts: 46,858 | These rules have been in place for a long time, Lamby. Was there a point to this thread? __________________ |
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| 01-06-2022, 04:39 PM | #3 |
lamboguy Registered User Join Date: Sep 2007 Location: Boston+Ocala Posts: 23,599 | Quote: Originally Posted by boxcar These rules have been in place for a long time, Lamby. Was there a point to this thread? actually they just started less than a week ago. this is part of the infrastructure bill. this includes payment methods such as VNMO, Cashapp, Zelle, Paypal. the difference to what you were thinking about is that you will be getting a 1099 from those company's and the banks that you are making your cash deposits at on a collective yearly basis. before it was $10,000 in cash for anything within a 15 day period of time, now its $600 for the whole year. |
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| 01-06-2022, 04:43 PM | #4 |
PaceAdvantage PA Steward Join Date: Mar 2001 Location: Del Boca Vista Posts: 87,775 | Yeah, all those online sellers who use PayPal as a payment collection method might be in for a rude awakening in a few months. __________________ |
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@| 01-06-2022, 04:45 PM | #5 |
tbwinner Registered User Join Date: May 2010 Posts: 2,020 | Stubhub is hounding my email for my TIN. I sold some tickets this year that I had received for about $400. Not even close to the threshold, sorry, not gonna happen! |
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| 01-06-2022, 05:04 PM | #6 |
boxcar Registered User Join Date: Oct 2001 Posts: 46,858 | Quote: Originally Posted by lamboguy actually they just started less than a week ago. this is part of the infrastructure bill. this includes payment methods such as VNMO, Cashapp, Zelle, Paypal. the difference to what you were thinking about is that you will be getting a 1099 from those company's and the banks that you are making your cash deposits at on a collective yearly basis. before it was $10,000 in cash for anything within a 15 day period of time, now its $600 for the whole year. Huh? The infrastructure bill never passed the Senate. Manchin blocked it. __________________ |
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| 01-06-2022, 05:06 PM | #7 |
NorCalGreg Authorized Advertiser Join Date: Dec 2014 Location: Oakland, Ca Posts: 7,953 | Something else that's been on the books since 1954 is the reporting requirement for vendors, online businesses, and private citizens--for sales over $600 in a calendar year. In 1954 $600 was the equivalent of appx $6K today...yet IRS refuses to increase this amount to reflect today's dollars. They have hired thousands of agents to enforce these archaic regulations. Ebay especially will be, and is- devastated by this action. Add PayPal, Etsy, Venmo...and hundreds of other firms. I'll see how this plays out--but if it stands as is...myself and thousands of other small businesses will be forced to close. The surprisingly small amount of profit I realize a year--if I have to share that with the govt to pay for all the money they've pissed away--forget it. There just won't be a Pace-View. And please, spare me your righteous comments about "It's the law--I should have been reporting this income in the first place". If that is your reaction--you have never run a small business. Do you have any idea what licenses, permits, red tape, etc. you need to open up shop for internet sales? City, State, and Federal? I didn't think so. |
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| 01-06-2022, 07:33 PM | #8 |
Striker Registered User Join Date: Jun 2009 Posts: 1,987 | Quote: Originally Posted by boxcar Huh? The infrastructure bill never passed the Senate. Manchin blocked it. Manchin didnt block the infrastructure bill and that bill did pass the senate and has been signed by Biden into law. Manchin was the senator who has technically blocked but just said he wouldnt support Bidens Build Back Better Act as of now. And this new $600 reporting from PayPal and Venmo etc wasnt in the infrastructure bill it was created in one of the stimulus bills from earlier in the year. |
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| 01-06-2022, 07:37 PM | #9 |
boxcar Registered User Join Date: Oct 2001 Posts: 46,858 | Quote: Originally Posted by Striker Manchin didnt block the infrastructure bill and that bill did pass the senate and has been signed by Biden into law. Manchin was the senator who has technically blocked but just said he wouldnt support Bidens Build Back Better Act as of now. And this new $600 reporting from PayPal and Venmo etc wasnt in the infrastructure bill it was created in one of the stimulus bills from earlier in the year. Okay, thanks for clarifying that. Did Biden get to add thousands of new IRS agents in one of those stimulus bills, as well? __________________ |
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| 01-06-2022, 08:02 PM | #10 |
Striker Registered User Join Date: Jun 2009 Posts: 1,987 | Quote: Originally Posted by boxcar Okay, thanks for clarifying that. Did Biden get to add thousands of new IRS agents in one of those stimulus bills, as well? No, that was in the Build Back Better Act, which Manchin said no to. But dont worry the Dems and Biden will keep trying as hard as they can to get it passed, most likely buried in some other bill that no Senator or Congressman will read. |
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| 01-06-2022, 08:24 PM | #11 |
NorCalGreg Authorized Advertiser Join Date: Dec 2014 Location: Oakland, Ca Posts: 7,953 | This sums it up perfectly: In a statement released on the Build Back Better framework in late October, the White House said "the IRS does not have the resources it needs to pursue wealthy tax cheats." But new evidence indicates tens of thousands of those new IRS agents would be tasked with targeting middle-income Americans. |
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| 01-06-2022, 08:36 PM | #12 |
boxcar Registered User Join Date: Oct 2001 Posts: 46,858 | Quote: Originally Posted by NorCalGreg This sums it up perfectly: In a statement released on the Build Back Better framework in late October, the White House said "the IRS does not have the resources it needs to pursue wealthy tax cheats." But new evidence indicates tens of thousands of those new IRS agents would be tasked with targeting middle-income Americans. Yup, go after the middle income people. Makes sense. Why would wealthy politicians stick the IRS on themselves? __________________ |
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| 01-06-2022, 09:30 PM | #13 |
Striker Registered User Join Date: Jun 2009 Posts: 1,987 | Only a politician could come up with annual amounts of $600/year for the bank transactions to be reported to the IRS and stand behind the decision. I would guess most Americans who have a bank account reach that threshold. Then they caught so much ridicule for the $600 they came up with $10k/year, and have the audacity to say this applies to wealthy Americans. Even though these amounts are non-payroll, its not hard to reach them. One of Yellens interviews on this was priceless as she gave the example of a person they want to go after as being one who reports $10k/year in income, and has over $1 million in bank transactions. |
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| 01-06-2022, 09:41 PM | #14 |
chrisl Registered User Join Date: Jan 2007 Location: Ketchikan,AK Posts: 2,086 | I send money all the time to family, through a cash app. Most of the time it is way over 600 bucks. Who would pay the taxes or have to claim this. I have to figure out another way. The truth in parenting. When your kids leave the nest, you better become a bank. |
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| 01-06-2022, 10:11 PM | #15 |
Cuffdaddy Registered User Join Date: May 2018 Location: Huntington Beach, Ca Posts: 554 | Quote: Originally Posted by chrisl I send money all the time to family, through a cash app. Most of the time it is way over 600 bucks. Who would pay the taxes or have to claim this. I have to figure out another way. The truth in parenting. When your kids leave the nest, you better become a bank. Article states reporting is for commercial transactions. Last edited by Cuffdaddy; 01-06-2022 at 10:15 PM. |
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