Namers

news Venmo, PayPal and Cash App will now have to report transactions totaling more than $600 to the IRS as Biden plans to ramp up financial enforcement

Namecheap

TangoTango

Upgraded Member
Impact
9
https://www.dailymail.co.uk/news/ar...App-report-transactions-totaling-600-IRS.html

  • The new reporting requirement will ensure that small businesses that receive payments through those apps are paying their fair share in taxes on them
  • Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions
  • The changes will be included during the 2022 tax season
  • The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or had more than 200 transactions per year
 
While this is a reporting change, you were already supposed to report this income to start with.

If people were reporting the income before, nothing is really going to change for them.

It will be an issue for the people who did not report the income in the past though.

Brad
 
The more regulation in the market the worse it is for consumers. Check out over here in Europe... what a state. Nobody can do anything without head spinning amounts of regulation. It stifles innovation.

It's a shame to see it.
Well, there it is a balancing act. A lot of people have used these venues to make a lot of money and not report the income. It might be from eBay sales, consulting, services, domain sales, crypto, NFT, whatever...

There are a lot of loopholes for people to generate unreported income, that they often don't report themselves.

Brad
 
Impact
1,133
The more regulation in the market the worse it is for consumers. Check out over here in Europe... what a state. Nobody can do anything without head spinning amounts of regulation. It stifles innovation.

It's a shame to see it.
Actually, the LESS regulated the marketplace the worse it is for consumers (wildlife and the planet). Regulations are the innovations that distinguish Europe, and all other developed nations, from less developed country marketplaces that lack consumer safety and environmental regulations.

Truth is... the regs are the economy in the post-industrial age.
 
Actually, the LESS regulated the marketplace the worse it is for consumers (wildlife and the planet). Regulations are the innovations that distinguish Europe, and all other developed nations, from less developed country marketplaces that lack consumer safety and environmental regulations.

Truth is... the regs are the economy in the post-industrial age.
The regulations are good for the behemoths of the market, they love regulation and there's a reason why they do... The more regulation there is, the harder it is for people to adhere to said regulations which means less likely they will have competitiors.

You can slap any arbitrary label on it about the benefits to the planet. How many people does it take to ensure people are adhering to all of the regulations.... Lots. Lots of travelling, lots of people working, lots of paperwork, lots of a lot of things.

I don't think that reporting $600 or less to the IRS is improving the state of wildlife and planet, do you?

I can't start a bank because of the mountains of regulation, they love it.

I don't argue that there should be some regulation, there should, but the EU are taking the biscuit. They'd regulate how much air you breathe in and out with each breath if they could.
 
Last edited:
Impact
8,591
Let set politic aside and think why they do this.
The stupid current administration spent too much money for nonsense stuffs and they just want to recover some money back.
Force people to get vaccine so they can get kick back from pharmaceutical companies is one obvious stupid decision and now it has to go to supreme court.

Go Brandon.
 
Last edited:
Impact
1,133
The regulations are good for the behemoths of the market, they love regulation and there's a reason why they do... The more regulation there is, the harder it is for people to adhere to said regulations which means less likely they will have competitiors.

You can slap any arbitrary label on it about the benefits to the planet. How many people does it take to ensure people are adhering to all of the regulations.... Lots. Lots of travelling, lots of people working, lots of paperwork, lots of a lot of things.

I don't think that reporting $600 or less to the IRS is improving the state of wildlife and planet, do you?

I can't start a bank because of the mountains of regulation, they love it.

I don't argue that there should be some regulation, there should, but the EU are taking the biscuit. They'd regulate how much air you breathe in and out with each breath if they could.
Regs are regs, for market behemoths and for 'people to adhere to'. Folks who do not want to follow the regs set-up 'shadow' markets, like the shadow banking industry that gave us two global financial crashes, in 2008 and in the 1920s... which lead to a lot of bank failures in the 1920s & 30s. Banking regulations since then has meant only 1% of U.S. Banks have failed since WWII.

You can start a bank online, as fintech software does the heavy lifting. And you can set-up a real world 'shadow bank' in some country jurisdictions.

If everybody reported transactions of $600 or less that would generate billions more in taxes that would go in-part to protecting wildlife and the planet.
 

Steven McEvoy

Top Contributor
Impact
1,591
While this is a reporting change, you were already supposed to report this income to start with.

If people were reporting the income before, nothing is really going to change for them.

It will be an issue for the people who did not report the income in the past though.

Brad
actually if you made like less then $1k that year you do not have to report that.
 

Steven McEvoy

Top Contributor
Impact
1,591
https://www.dailymail.co.uk/news/ar...App-report-transactions-totaling-600-IRS.html

  • The new reporting requirement will ensure that small businesses that receive payments through those apps are paying their fair share in taxes on them
  • Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions
  • The changes will be included during the 2022 tax season
  • The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or had more than 200 transactions per year
This rule does not apply if you use F&F as the transactions FYI.
 
  • The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or had more than 200 transactions per year
This is the entire issue. Most people were just simply not reporting income.

You could make many thousands of dollars or more, and not report if they were on under 200 transactions.

The fact it was $20K AND 200+ transactions created a massive loophole. It created a situation were you could make hundreds of thousands of dollars in unreported income, and it was greatly abused.

I personally know people who abused it.

If you were already reporting your income properly, this is not an issue.

Brad
 
Last edited:
Impact
1,133
Top Bottom