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$600 1099K requirements delayed until 2024

3stars3stars Posts: 2,282 ✭✭✭✭✭
edited December 27, 2022 10:03AM in U.S. Coin Forum

Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

Previous transactions: Wondercoin, goldman86, dmarks, Type2

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭

    IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K
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    IR-2022-226, December 23, 2022

    WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.

    As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.

    As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) that would have generated Form 1099-Ks for taxpayers.

    "The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan," said Acting IRS Commissioner Doug O'Donnell. "To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements."

    The American Rescue Plan of 2021 changed the reporting threshold for TPSOs. The new threshold for business transactions is $600 per year; changed from the previous threshold of more than 200 transactions per year, exceeding an aggregate amount of $20,000. The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill.

    Under the law, beginning January 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee's an IRS Form 1099-K, Payment Card and Third-Party Network Transactions.

    The transition period described in Notice 2023-10PDF, delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022. The transition period is intended to facilitate an orderly transition for TPSO tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction.

    The change under the law is hugely important because tax compliance is higher when amounts are subject to information reporting, like the Form 1099-K. However, the IRS noted it must be managed carefully to help ensure that 1099-Ks are only issued to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and tax preparers and software providers have the information they need to assist taxpayers.

    Additional details on the delay will be available in the near future along with additional information to help taxpayers and the industry. For taxpayers who may have already received a 1099-K as a result of the statutory changes, the IRS is working rapidly to provide instructions and clarity so that taxpayers understand what to do.

    The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.

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    winestevenwinesteven Posts: 4,078 ✭✭✭✭✭
    edited December 23, 2022 11:16PM

    Gee, if I remember right, this provision was specifically put in place to raise a specific amount of projected revenue to cover part of the cost of the American Rescue Plan………..

    A day without fine wine and working on your coin collection is like a day without sunshine!!!

    My collecting “Pride & Joy” is my PCGS Registry Dansco 7070 Set:
    https://www.pcgs.com/setregistry/type-sets/design-type-sets/complete-dansco-7070-modified-type-set-1796-date/publishedset/213996
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    rickoricko Posts: 98,724 ✭✭✭✭✭

    Looks like Uncle Sam is searching for income... like a kid looking in couch cushions for lost change.... ;) Cheers, RickO

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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭
    edited December 24, 2022 7:25AM

    The reason the government delayed implementation of the new 1099k rules is the IRS is overwhelmed and short staffed. They don't have the manpower to process mail and answer the phones so there is no way they can handle this now. We might see it in the future.

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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭
    edited December 24, 2022 8:03AM

    @tyler267 said:
    The reason the government delayed implementation of the new 1099k rules is the IRS is overwhelmed and short staffed. They don't have the manpower to process mail and answer the phones so there is no way they can handle this now. We might see it in the future.

    This.

    They need to work out how they are going to avoid all the non business transactions. People who venmo and zelle each other for their starbucks coffee daily. I have to assume they are giving the payment processors more time to separate their business and personal users. Earlier this year Venmo started sending me info to set up a business account. I would guess that by the end of this year more people will have to opt in our out of business accounts and only those will get a 1099k.

    And, the IRS will have to make an easier form for people who are not in business to report transactions as personal other than schedule C or D. In case they do receive a 1099k for personal transactions.

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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    @tyler267 said:
    The reason the government delayed implementation of the new 1099k rules is the IRS is overwhelmed and short staffed. They don't have the manpower to process mail and answer the phones so there is no way they can handle this now. We might see it in the future.

    It's handled by a computer. If your return doesn't include the 1099-k then you get a notice from IRS telling you that the entire amount is due.

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭

    @WQuarterFreddie said:

    @tyler267 said:
    The reason the government delayed implementation of the new 1099k rules is the IRS is overwhelmed and short staffed. They don't have the manpower to process mail and answer the phones so there is no way they can handle this now. We might see it in the future.

    It's handled by a computer. If your return doesn't include the 1099-k then you get a notice from IRS telling you that the entire amount is due.

    Yep the IRS calls it ACS, the notice they send is actually part of the examination(audit) process but in reality it is a mix match notice. The taxpayer has the right to a correct income tax assessment so the problem is that the IRS has to manually process all of the correspondence and amended returns informing them that the taxpayer has basis in what was sold or they selling used personal items and no tax is due. Even without the new 1099k rules they are already backed up on this type of correspondence and are issuing final assessment letters(statutory notice of deficiency) when they have unprocessed correspondence and amended returns in thier possession. This notice requires the taxpayer to file a Tax Court Petition to preserve thier rights. Sorry for the long post but delaying this is the smartest thing they can do there is no way they handle this right now and ,unless they modify these rules, maybe not for a while.

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    3stars3stars Posts: 2,282 ✭✭✭✭✭

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
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    jmlanzafjmlanzaf Posts: 31,997 ✭✭✭✭✭

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    Glad you are running around posting this everywhere. So let me follow you around and respond. Some states, maybe yours, already have $600 thresholds. To my knowledge, Ebay has been using the $20k threshold for Federal reporting.

    https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

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    derrybderryb Posts: 36,212 ✭✭✭✭✭

    @bigjpst said:

    And, the IRS will have to make an easier form for people who are not in business to report transactions as personal other than schedule C or D. In case they do receive a 1099k for personal transactions.

    Careful using schedule D to report income that appears on a 1099K. Got a tax bill from IRS for over $20K for tax year 2020 because they claimed I did not report the 1099K income. I did report it on a Sch. D. Turns out they are looking for it on a Sch C as business income. Took a lot of letters and phone calls to get them to understand that it was in fact reported on the tax return and taxes were paid on it. I now use Sch. C to report my investment income that gets reported on a 1099K.

    Note: This involved the selling of investment bullion on ebay that I correctly reported as investment income on the Sch. D.

    Give Me Liberty or Give Me Debt

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    jessewvujessewvu Posts: 5,063 ✭✭✭✭✭

    What a mess. They should delay reporting but enforce the LAW for CY 2022, those that didn't report properly should be heavily fined. It's baffling how a LAW can be put into place and then just handwaved wave it's enforcement. However, I doubt anyone will actually advocate to have the law enforced in this case.

    The foundation of America is crumbling and nobody cares.

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭

    @derryb said:

    @bigjpst said:

    And, the IRS will have to make an easier form for people who are not in business to report transactions as personal other than schedule C or D. In case they do receive a 1099k for personal transactions.

    Careful using schedule D to report income that appears on a 1099K. Got a tax bill from IRS for over $20K for tax year 2020 because they claimed I did not report the 1099K income. I did report it on a Sch. D. Turns out they are looking for it on a Sch C as business income. Took a lot of letters and phone calls to get them to understand that it was in fact reported on the tax return and taxes were paid on it. I now use Sch. C to report my investment income that gets reported on a 1099K.

    Note: This involved the selling of investment bullion on ebay that I correctly reported as investment income on the Sch. D.

    This is where it gets complicated. Your investment activity should be on schedule D not schedule C. The IRS system doesn't see this. So until they give us a form to report these transactions we need be creative. Schedule C can trigger a higher tax rate and is more likely to be audited. I include the 1099k amount as other income then deduct the same amount so it nets to zero I add a note that I properly moved the activity to schedule D. This is just what I do not trying to give tax or legal advice best to talk to your tax preparer.

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    3stars3stars Posts: 2,282 ✭✭✭✭✭

    I’ve heard to report eBay 1099k on schedule 1 line 8z for other income, then if it’s the casual selling at a loss to remove it on line 24z. Not a tax accountant, so that could be wrong.

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
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    bigjpstbigjpst Posts: 3,033 ✭✭✭✭✭

    @derryb said:

    @bigjpst said:

    And, the IRS will have to make an easier form for people who are not in business to report transactions as personal other than schedule C or D. In case they do receive a 1099k for personal transactions.

    Careful using schedule D to report income that appears on a 1099K. Got a tax bill from IRS for over $20K for tax year 2020 because they claimed I did not report the 1099K income. I did report it on a Sch. D. Turns out they are looking for it on a Sch C as business income. Took a lot of letters and phone calls to get them to understand that it was in fact reported on the tax return and taxes were paid on it. I now use Sch. C to report my investment income that gets reported on a 1099K.

    Note: This involved the selling of investment bullion on ebay that I correctly reported as investment income on the Sch. D.

    This is the problem I was referring to. If you are not reporting business income, it should not be on schedule c.
    If you are reporting investment income on schedule d the 1099k confuses things. Because the IRS document matching. If a 1099k is issued and no schedule c filed out pops a letter.
    Or, if you are now going to get a 1099k for all the personal Venmo transactions reporting on schedule 1 May work to zero out the income but anytime we are writing in income and deductions there is a good chance a letter will be issued and further clarification from a live person required.

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    derrybderryb Posts: 36,212 ✭✭✭✭✭
    edited December 25, 2022 11:59AM

    @tyler267 said:
    I include the 1099k amount as other income then deduct the same amount so it nets to zero I add a note that I properly moved the activity to schedule D. This is just what I do not trying to give tax or legal advice best to talk to your tax preparer.

    Unfortunately a "note" is not an option when one files their own electronic return.

    Give Me Liberty or Give Me Debt

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭
    edited December 24, 2022 4:27PM

    @derryb said:

    @tyler267 said:
    I include the 1099k amount as other income then deduct the same amount so it nets to zero I add a note that I properly moved the activity to schedule D. This is just what I do not trying to give tax or legal advice best to talk to your tax preparer.

    Unfortunately a "note" is not an option when one files an electronic return.

    Why not? I'm trying not to use technical terms but the IRS and tax profession would call it a disclosure statement. Really common.

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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    @3stars said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Wrong.

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    VanHalenVanHalen Posts: 3,814 ✭✭✭✭✭

    @3stars said:
    I’ve heard to report eBay 1099k on schedule 1 line 8z for other income, then if it’s the casual selling at a loss to remove it on line 24z. Not a tax accountant, so that could be wrong.

    I'll check that out in about 6 weeks. eBay will be sending me a 1099 for sure.

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    jmlanzafjmlanzaf Posts: 31,997 ✭✭✭✭✭
    edited December 25, 2022 6:44AM

    @WQuarterFreddie said:

    @3stars said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Wrong.

    That is the standard that ebay is using. See my link that you are ignoring. You could be in a State that requires $600 reporting. Illinois. For example.

    https://www.track1099.com/info/state_info

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭

    Your coin income is taxable and should be reported to the IRS as follows. Hobbyist - report your income as "other income" can't write off losses: Investor - report income or loss on schedule D: Sole Proprietor Coin business owner - Report income and expenses on Schedule C. Talk to your CPA they will be familiar with the rules. In the past there have been 1099k matching problems in the IRS system. I'm Hoping this has been fixed but not counting on it.

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    sellitstoresellitstore Posts: 2,494 ✭✭✭✭✭

    @jmlanzaf said:

    @WQuarterFreddie said:

    @3stars said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Wrong.

    That is the standard that ebay is using. See my link that you are ignoring. You could be in a State that requires $600 reporting. Illinois. For example.

    https://www.track1099.com/info/state_info

    Yes, but wouldn't that affect only your state return, and not your Federal return, if you live in a $600 limit state?

    Collector and dealer in obsolete currency. Always buying all obsolete bank notes and scrip.
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    jmlanzafjmlanzaf Posts: 31,997 ✭✭✭✭✭

    @sellitstore said:

    @jmlanzaf said:

    @WQuarterFreddie said:

    @3stars said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Wrong.

    That is the standard that ebay is using. See my link that you are ignoring. You could be in a State that requires $600 reporting. Illinois. For example.

    https://www.track1099.com/info/state_info

    Yes, but wouldn't that affect only your state return, and not your Federal return, if you live in a $600 limit state?

    @sellitstore said:

    @jmlanzaf said:

    @WQuarterFreddie said:

    @3stars said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    It means you met the original threshold of 200/$20k and would get one regardless of the new rules.

    Wrong.

    That is the standard that ebay is using. See my link that you are ignoring. You could be in a State that requires $600 reporting. Illinois. For example.

    https://www.track1099.com/info/state_info

    Yes, but wouldn't that affect only your state return, and not your Federal return, if you live in a $600 limit state?

    They share data. And IT IS REPORTABLE, with or without a 1099.

    However, the point is the issuance of a 1099. If you live in a state that has a lower limit, eBay has to issue the 1099. Ebay uses the $20k Federal standard, contrary to what Freddie is suggesting. However, if you live in Illinois, you may get one because the state has a $600 threshold. It isn't ebay. It is Illinois.

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    JBKJBK Posts: 14,788 ✭✭✭✭✭

    The burden is not just about reporting taxable income, it's about having to report or explain what is on the 1099. There are lots of transactions that won't be taxable but generating a 1099 puts you on the IRS's radar, and you are then guilty until proven innocent.

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    derrybderryb Posts: 36,212 ✭✭✭✭✭
    edited December 25, 2022 11:56AM

    @JBK said:
    The burden is not just about reporting taxable income, it's about having to report or explain what is on the 1099. There are lots of transactions that won't be taxable but generating a 1099 puts you on the IRS's radar, and you are then guilty until proven innocent.

    all income is required to be reported to the IRS by the earner on a Form 1040. 1099ks are used to document earned income to both the earner and to the IRS. If what you report does not line up with what the 1099K says, you will have your day in court.

    If income reported on a 1099K is considered to be not taxable by the earner, then earner should have requested the sender send the payment as a "gift." This would eliminate it being considered income on the 1099K. The IRS considers all income reported on a 1099K to be earned income and therefore taxable.

    Give Me Liberty or Give Me Debt

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    batumibatumi Posts: 797 ✭✭✭✭

    @jessewvu said:
    What a mess. They should delay reporting but enforce the LAW for CY 2022, those that didn't report properly should be heavily fined. It's baffling how a LAW can be put into place and then just handwaved wave it's enforcement. However, I doubt anyone will actually advocate to have the law enforced in this case.

    The foundation of America is crumbling and nobody cares.

    As in the train wreck once known as the southern border.

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    tyler267tyler267 Posts: 1,234 ✭✭✭✭

    Merry Christmas and Happy Holidays!! Im on this forum to enjoy our hobby, so this is my last post about taxes. I believe everyone has the right to make thier own decisions. Given that I represent taxpayers before the US Tax Court for a living bad taxpayer decisions result in lots of work for myself and my colleagues. In the spirit of helpfulness I want to provide a little education, but I recommend you talk to your own tax pofessional. Unlike other areas of law, in tax law the burden of proof generally rests with the taxpayer. Criminal or civil Tax fraud requires willful intent, an example would be knowingly undereporting sales, there is no lower dollar limit or statute of limitations on fraud. Whether you recieve a 1099k or not doesn't matter sales should be reported. Not all sales generate taxable income. What form you choose could affect the tax amount of tax you pay, or possibly get you in trouble with the IRS. Coin collecting forums are fun and educational but not the best place to get tax advice, a good CPA or EA is worth every penny. IRS made the right decision in postponing the 1099k reporting requirement they are already overwhelmed and dont have the manpower. They also need to issue guidance on how report the various types of transactions. This law like every federal law is made by congress, the IRS administers tax laws they don't make them. The latest tax gap numbers estimate federal lost tax revenue of $396 billion due to under reported and unreported income, regardless of what's in the news this is the small guys not major corporations so I think we are going to see more IRS enforcement not less.

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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    And yet this country was founded on the basis of unfair taxes from the British. 🙄

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    jmlanzafjmlanzaf Posts: 31,997 ✭✭✭✭✭

    @WQuarterFreddie said:
    And yet this country was founded on the basis of unfair taxes from the British. 🙄

    I'd say that taxes on profits from the sales of goods could be viewed as being quite "fair".

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    3stars3stars Posts: 2,282 ✭✭✭✭✭

    @tyler267 said:
    Your coin income is taxable and should be reported to the IRS as follows. Hobbyist - report your income as "other income" can't write off losses: Investor - report income or loss on schedule D: Sole Proprietor Coin business owner - Report income and expenses on Schedule C. Talk to your CPA they will be familiar with the rules. In the past there have been 1099k matching problems in the IRS system. I'm Hoping this has been fixed but not counting on it.

    There’s another category for casual sellers AKA the garage sale seller. It’s not a hobby, investment or a business, just the occasional sale of items usually for a loss

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    @DelawareDoons said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    eBay is campaigning hard against the new 1099 limits. No way they send out 1099's for sub 20k/200 now.

    Well, looking forward to hearing from said sellers in late January/early February. Only then will we know if you or me is correct.🤔

    I doubt they will change the software that they already developed to comply in 2020 and 2021.

    Again, the horse has left the barn and most of the affected sellers from the past 2 years have already left the platform. I have so this doesn't affect me either way😉

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    jmlanzafjmlanzaf Posts: 31,997 ✭✭✭✭✭

    @WQuarterFreddie said:

    @DelawareDoons said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    eBay is campaigning hard against the new 1099 limits. No way they send out 1099's for sub 20k/200 now.

    Well, looking forward to hearing from said sellers in late January/early February. Only then will we know if you or me is correct.🤔

    I doubt they will change the software that they already developed to comply in 2020 and 2021.

    Again, the horse has left the barn and most of the affected sellers from the past 2 years have already left the platform. I have so this doesn't affect me either way😉

    Except you're still pushing misinformation.

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    pmh1nicpmh1nic Posts: 3,151 ✭✭✭✭✭

    @DelawareDoons said:

    @WQuarterFreddie said:

    @3stars said:
    Previous standard remains in effect. Small sellers get a reprieve. Plan ahead for 2024... Obviously you still have to pay taxes on profits, but for sellers who sell more than $600 at a loss no tax reporting burden at this time.

    Disagree. So what does this mean for Ebay sellers that got their 1099K for years 2020 and 2021 and I bet will get them for 2022?

    Don't be fooled. This waiver will only apply to the COMPANIES that are unable to generate and send them. Ebay and Amazon will still send them out in my opinion and sellers WILL NOT get a reprieve.

    eBay is campaigning hard against the new 1099 limits. No way they send out 1099's for sub 20k/200 now.

    EBay is getting help to stop the $600 insanity from both democrats and republicans that now realize what a mess lowering the amount to $600 has caused. Techically the IRS doesn't have the statutory authority to delay implication of the $600 rule.

    That said their announcement says "as a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS OR THE PAYEE for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021".

    Since this is existing law only Congress can change it. Both the democrats and republicans will be introducing legislation early next year to increase the amount. The democrats will be introducing a bill called (get ready for this) the "Cut Red Tape for Online Sales Act" which proposes to increase the amount to $5,000. The republicans are trying to get it back to $20,000.

    The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin
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