1099 questions linger, paypal purchases exempt
derryb
Posts: 37,661 ✭✭✭✭✭
According to this, paypal payments will be exempt from 2012's 1099 reporting requirements for buyers.
1099 Questions Still Linger
1099 Questions Still Linger
No Way Out: Stimulus and Money Printing Are the Only Path Left
0
Comments
<< <i>According to this, paypal payments will be exempt from 2012's 1099 reporting requirements for buyers.
1099 Questions Still Linger >>
Catch-22... PayPal is required to report cumulative transfers over $20K, but we're exempt from reporting them... ummm, good luck with that!
UNDER SEPARATE LEGISLATION (the health care bill), starting in 2012, purchasers are required to report their purchases to the IRS on a 1099 in an effort to catch sellers that do not report their income as required by CURRENT IRS law. Recovery of this lost tax income is supposed to help fund health care "reform." According to the link in the OP, buyers who pay with paypal will be exempt from the 1099 reporting requirement that takes affect in 2012 because paypal will be reporting electronic transactions to the IRS as a result of the reporting requirement that took effect in 2011.
Confused yet?
No Way Out: Stimulus and Money Printing Are the Only Path Left
<< <i>is the $20K+200 transactions thingie just for ebay? If I had other paypal tranactions, do they count? How about gifts? >>
You have two "laws" mixed together. The recently passed health care law has the $600 transaction between
folks. What you are quoting (20k or 200 transactions) is an entirely different law. The newer 1099 requirement
for $600 does not affect the older 20k or 200 that Paypal will report for this year. I've asked several different
Paypal reps what the 20k or 200 meant and all but one had no idea what I was talking about. The one said that
it does not matter what kind of transactions they are on Paypal, it is just the number (that would tell me that gifts
and e-checks and all would be included), or the amount of 20k or more.
Who in the heck cares? Just pay your taxes on your profits.
bob
edited: derryb posted this!
<< <i>As I say every time this comes up, who cares if PayPal reports transactions? Keep records, pay taxes as the law requires, and there is no problem. >>
And again, you miss the point of the post: Paypal's reporting requirement will remove the 1099 buyer reporting requirement from those that use paypal to buy. Post has nothing to do with trying to avoid taxes so let's not try to turn into one that does.
No Way Out: Stimulus and Money Printing Are the Only Path Left
<< <i>As I say every time this comes up, who cares if PayPal reports transactions? Keep records, pay taxes as the law requires, and there is no problem. >>
Spoken like someone that has never been audited. So what receipt do you have for your transactions on this site? In 10 years when the site is not here (of course it was upgraded to something else), you will have printouts of all of your PM's. If the IRS agent is having a bad day, he is not going to take your word document as proof. It would be no different than handing in a bunch of receipts all in your handwriting.
All items would be donated as a fund raiser and I don't expect the overage.
I'm going on the premise that Health Care now requires the reporting of a 1009 if I receive or spend more than $600.00 with one person over the course of the year.
I pay my taxes. I pay, and pay, and pay. And every time I have to jump through another hoop for the government's satisfaction, I care more.
I knew it would happen.