Maggie’s IRS to start taxing certain money transfer app users

I'm shocked...

I suspect it has less to do with tax revenue and more about monitoring your finances. Or getting you used to the feds monitoring your finances.

Cash apps just have to issue a 1099-K going forward.. That's the same form merchant service providers issue when you collect credit card payments.

The IRS has always required that individuals and businesses issue a 1099MISC/NEC to any individual or business(other than corps) they've paid >$600 for services in a calendar year. Most people just don't bother. Gifts/transfers still aren't taxable. Tips over $20/mo. have always been taxable. What's changed? Just third party reporting requirements? Every payment processor other than these "cash apps" has been complying with these same reporting requirements for years.

I got a kick out of the barber, stylist and musician in the article though. Sounds like they're upset that they can't underreport their income anymore. More "gig" workers actually paying taxes might not be a bad thing. Stimulus checks and green deals tend to sound nice to people who don't have to pay for it.

IMO-It's to get rid of paper money and have everything computerized. Once that happens, they can shut it all down....for your safety of course.

vinniedelpino said:

Cash apps just have to issue a 1099-K going forward.. That's the same form merchant service providers issue when you collect credit card payments.

The IRS has always required that individuals and businesses issue a 1099MISC/NEC to any individual or business(other than corps) they've paid >$600 for services in a calendar year. Most people just don't bother. Gifts/transfers still aren't taxable. Tips over $20/mo. have always been taxable. What's changed? Just third party reporting requirements? Every payment processor other than these "cash apps" has been complying with these same reporting requirements for years.

I got a kick out of the barber, stylist and musician in the article though. Sounds like they're upset that they can't underreport their income anymore. More "gig" workers actually paying taxes might not be a bad thing. Stimulus checks and green deals tend to sound nice to people who don't have to pay for it.

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One gets the notion to cheat when they're over taxed and watch their tax dollars handed
out to those who haven't a right to receive it.
The gov, folks who piss away trillions, want to know what we are doing with our money...

R

It's a gift, not a payment. That gal looked hungry, I was just donating.

Rthur said:

One gets the notion to cheat when they're over taxed and watch their tax dollars handed
out to those who haven't a right to receive it.
The gov, folks who piss away trillions, want to know what we are doing with our money...

R

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I get it, but when everyone is of that mindset we have an economic meltdown.

This was a natural step for the IRS. I'm still waiting for them to require cryptocurrency exchanges to issue 1099Bs. That's the same form you'd receive from e-trade if you bought/sold stock.

I'm not happy with the current state of affairs either. I'm expecting more of this stuff though. Both the way we move money and the way we invest has changed a lot in the last few years.

vinniedelpino said:

I get it, but when everyone is of that mindset we have an economic meltdown.

This was a natural step for the IRS. I'm still waiting for them to require cryptocurrency exchanges to issue 1099Bs. That's the same form you'd receive from e-trade if you bought/sold stock.

I'm not happy with the current state of affairs either. I'm expecting more of this stuff though. Both the way we move money and the way we invest has changed a lot in the last few years.

Click to expand...

Its getting positively 'Beastly' out there.

vinniedelpino said:

Cash apps just have to issue a 1099-K going forward.. That's the same form merchant service providers issue when you collect credit card payments.

The IRS has always required that individuals and businesses issue a 1099MISC/NEC to any individual or business(other than corps) they've paid >$600 for services in a calendar year. Most people just don't bother. Gifts/transfers still aren't taxable. Tips over $20/mo. have always been taxable. What's changed? Just third party reporting requirements? Every payment processor other than these "cash apps" has been complying with these same reporting requirements for years.

I got a kick out of the barber, stylist and musician in the article though. Sounds like they're upset that they can't underreport their income anymore. More "gig" workers actually paying taxes might not be a bad thing. Stimulus checks and green deals tend to sound nice to people who don't have to pay for it.

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I get where you are coming from, however, one has to agree (I think) we do not have a 'Tax' problem as much as we have a 'Spend' problem.

The revelation that the 'Big Guy' gets 10% was only the tip of the iceberg. All these swampers get a skim on everything they do. In hindsight Trump should have never done the deal with the devil and allowed big Pharma to develop a vaccine that he paid for with our tax dollars. How much is being skimmed and put into the politician's pockets?

WTF do they deserve to get ANY of a side hustle when they don't deserve to get any of what they steal now?

As Steven says, 'Change My Mind'

I can't breathe.

vinniedelpino said:

I get it, but when everyone is of that mindset we have an economic meltdown.

This was a natural step for the IRS. I'm still waiting for them to require cryptocurrency exchanges to issue 1099Bs. That's the same form you'd receive from e-trade if you bought/sold stock.

I'm not happy with the current state of affairs either. I'm expecting more of this stuff though. Both the way we move money and the way we invest has changed a lot in the last few years.

Click to expand...

30 trillion in debt, I'm afraid they already have set that in motion.
Natural means something different to me.
I see an oppressive gov agency drunk on power and vindictive in their action.
I'm guessing you're a cpa.
Just because you placate the over reach doesn't a good deed make.

R

Rthur said:

30 trillion in debt, I'm afraid they already have set that in motion.
Natural means something different to me.
I see an oppressive gov agency drunk on power and vindictive in their action.
I'm guessing you're a cpa.
Just because you placate the over reach doesn't a good deed make.

R

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Don’t worry bidet said it wouldn’t cost anything. We are free and clear...

I have a serious problem paying more taxes when:

a) Social Security will run out long before I’m eligible for retirement, yet I’m paying in to it.

b) politicians are over-paid by MANY orders of magnitude.

c) politicians created millions (billions?) of dollars from thin air to pay lazy ass mf’ers to sit on their ass and collect during a “pandemic,” when I was out busting my ass to earn what I could and pay my own bills.

d) did I mention politicians are over-paid by MANY orders of magnitude???

e) see b and d above

Basher said:

Social Security will run out long before I’m eligible for retirement, yet I’m paying in to it.

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If it helps, no one "pays into" social security.
Current payments go to current recipients.
SS is structured identically to the ponzi scheme that sent Bernie Madhoff to prison.
At the time SS was implemented, the age to collect benefits (65), was higher than the average life expectancy (61).
This was at the height of the great depression, when government was shutting down banks, to prevent everyone from withdrawing their money.

SS was a sham to give long term, low interest loans to a government facing bankruptcy.

So long as my stolen tax dollars are funding the murder of babies!!! And given to illegals, and skimmed by all of the the politicians....You can bet your ass I will do everything I can not to pay anymore than I absolutely have to

vinniedelpino said:

Cash apps just have to issue a 1099-K going forward.. That's the same form merchant service providers issue when you collect credit card payments.

The IRS has always required that individuals and businesses issue a 1099MISC/NEC to any individual or business(other than corps) they've paid >$600 for services in a calendar year. Most people just don't bother. Gifts/transfers still aren't taxable. Tips over $20/mo. have always been taxable. What's changed? Just third party reporting requirements? Every payment processor other than these "cash apps" has been complying with these same reporting requirements for years.

I got a kick out of the barber, stylist and musician in the article though. Sounds like they're upset that they can't underreport their income anymore. More "gig" workers actually paying taxes might not be a bad thing. Stimulus checks and green deals tend to sound nice to people who don't have to pay for it.

Click to expand...

The issuer of the 1099 also provides a copy to the IRS. say the IRS audits you, and you don't report a gift > $600 (as you shouldn't); now you'll have to go through the effort of convincing the auditor that amount isn't taxable.

Anyway, why do you think the govt. has a right to half of people's earnings? Your comment seems to imply you do. Asking from a philosophical perspective, not talking about that crappy constitutional amendment.

CSGambill said:

The issuer of the 1099 also provides a copy to the IRS. say the IRS audits you, and you don't report a gift > $600 (as you shouldn't); now you'll have to go through the effort of convincing the auditor that amount isn't taxable.

Anyway, why do you think the govt. has a right to half of people's earnings? Your comment seems to imply you do. Asking from a philosophical perspective, not talking about that crappy constitutional amendment.

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Not mention the crazy amount of other taxes that are on every single thing you already buy, plus state and local, plus social security (that they already raided), then go print money and raise gas prices to cut our buying power by 1/3.

We are simply not a serious country anymore.

BuildingConceptsllc said:

Not mention the crazy amount of other taxes that are on every single thing you already buy, plus state and local, plus social security (that they already raided), then go print money and raise gas prices to cut our buying power by 1/3.

We are simply not a serious country anymore.

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Preaching to the choir. I pulled a John Galt in the beginning of September. I've worked in tax for 20 years.

Legalized theft.

And just like that, young people learned how cash works.

Rthur said:

30 trillion in debt, I'm afraid they already have set that in motion.
Natural means something different to me.
I see an oppressive gov agency drunk on power and vindictive in their action.
I'm guessing you're a cpa.
Just because you placate the over reach doesn't a good deed make.

R

Click to expand...

I don't condone the overreach and I'd gladly be the first here to vote myself out of a job if given the opportunity. The fact that my job even exists is baffling. The only joy I get out of my professional life is when I get to stick it to the man every now again.

I agree with everything you said. The IRS is predictable though. These reporting requirements exist for every other merchant services provider, including paypal. Anything other than "friends and family" is subject to fees and 1099k reporting requirements. It was just a matter of time before cashapp and venmo were pulled into the mix.

CSGambill said:

The issuer of the 1099 also provides a copy to the IRS. say the IRS audits you, and you don't report a gift > $600 (as you shouldn't); now you'll have to go through the effort of convincing the auditor that amount isn't taxable.

Anyway, why do you think the govt. has a right to half of people's earnings? Your comment seems to imply you do. Asking from a philosophical perspective, not talking about that crappy constitutional amendment.

Click to expand...

You don't report gifts at all at any amount. The gift giver does, and that's just an informational return for gifts over $15k until they've given over $11.7m. After they meet that threshold gift taxes kick in.

This proposal is the same arrangement we're currently seeing with paypal. If you send/receive money through paypal friends and family there's no reporting requirements. Pay for goods/services through a paypal merchant account and you receive the same 1099k that's proposed here. Life will go on uninterrupted for everyone other than self employed individuals that have been using venmo and cashapp to hide revenue.

From a philosophical perspective, I'd prefer that we pay no tax to the federal government at all. I'd like to see a flat tax paid to the state. The states would remit a portion of this tax to the federal government to support the military, interstate infrastructure, national parks and epic fireworks displays over national monuments every fourth of July. That's about it.

This 1099k thing is nothing to worry about. I'm still expecting taxpayers making over $400k to get the shaft, stepped up basis to disappear and the lifetime exemption to decrease substantially. Those things concern me.

https://www.verifythis.com/article/...axes/536-04e9ffd7-82e0-4685-9ec0-4dc08c0b3d01

The more you tighten your grip, Tarkin, the more star systems will slip through your fingers.

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They will just push everybody into cash. This $600 account balance forcing full activity disclosure is making me want to go to full cash for everything. IRS was weaponized against conservatives by Obama.. this will only make it worse.

I love how the folks talking about “civil war!!” (Unlike me), are busy (like me) getting their taxes in on time......laughable really!

Like @vinniedelpino says, there is nothing new or surprising here. PP, ebay and a host of others started this long ago. Anyone who thought any new technology used to move money around was not eventually going to come under the IRS perview was just delusional......

NoDopes said:

They will just push everybody into cash. This $600 account balance forcing full activity disclosure is making me want to go to full cash for everything. IRS was weaponized against conservatives by Obama.. this will only make it worse.

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Ha! They were “weaponized” long before Obama....

Smitty192 said:

I'm shocked...

I suspect it has less to do with tax revenue and more about monitoring your finances. Or getting you used to the feds monitoring your finances.

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Its not like we weren't warned of the Mark of the Beast cashless society and chip implant forty years ago.

TexPatriot said:

Its not like we weren't warned of the Mark of the Beast cashless society and chip implant forty years ago.

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And we were called tin foil hat wearing conspiracy theorist...