not a rickroll

could sadly push a lot of transfers here to crypto

It says for commercial transactions though. You can still send p2p without the reporting requirement.

That's why it asks you whether this is a business transaction when you send a payment.

saw it mentioned in the pfa podcast and he says it's all going to be reported and then irs decides if it's a genuine friends and family transaction or not

for people who send large amounts often we could get flagged because normies don't ship 4 figures back and forth on a weekly basis

Wow I thought the IRS was spread thin as it is, I'm surprised they want to dedicate resources to this, but oh well.

For business accounts and it is 600 cumulative for the year. They're going after the "rich" people hiding 10s of 100s of dollars.

i imagine you do a lot of transfer volume, have you spoken to reps at those companies regarding this for clarity?

Ha, high volume for sure. My PP is business so I never use that for anything else. The other 6 or 7 cards/apps, I'm already over that threshold. I'll speak with accountant in couple months when taxes get done. My guess is they will not do 1099K for low dollar individuals for now. I'd be willing to bet heavily if the current make-up in DC stays the same that they will do the same for individual accounts.

Thankfully, the part where they tried to get them issued for crypto wallets was skipped.

And this is a problem because?...

lol

Hey man, or woman, since you don't value your privacy all that much how bout you let me look at all your text messages and PMs. On top of that, let me listen in on all your phone calls. While we're at it, let me stand outside your house and peer in through your blinds. You're not doing anything wrong so it shouldn't bother you anyways, right?

IMO this is actually minimal effort by the IRS. It's much easier to lean on business than individuals. Once 'all' these 1099 are in the system they'll let the computer do the work to find folks they want to put their efforts into. If a person/entity knows that a 1099 is in the system then they're going to feel much more inclined to report the income and pay the taxes with 'no' effort by the IRS to collect.

I really don't think that these services will 'just' send a bunch of 1099 for FAF transactions. They will send the 'goods and services' stuff as requested. Why do the extra work and potentially piss off users for documenting. I also believe that in your profile you designate whether or not you are a business or 'person' and that will influence the services computer when looking to produce these forms. I do know of accounts that have been cut off for too many transactions on the personal side. They were asked to either switch their profile designation or somehow justify the volume of transactions.

I also know of a person who had Friend of Court review those Apps to assist in determining child support .. it didn't go well for this person since he couldn't go to court and give them the real reason that all those funds were flowing through.

Not to derail this thread, but I've been a 'silent' advocator of a Federal Sales Tax instead of taxing 'wages'. Plenty of debate/holes on both sides IMO .. but I go back to the fact that it's a lot easier to collect from businesses than individuals. If you're rich and buy expensive stuff you pay more in tax .. very easy ratio. Still need to file annually for all the other stuff on our returns and probably give some money back to large families that have to spend more on 'stuff' for non-wage earners by default.

Just two or three cents .. GL

1099-K Threshold Change:

This new Threshold Change is currently only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips, etc.

Source: https://newsroom.paypal-corp.com/202...tions-Answered

But the same press release warns of this possible future legislative addition:

In-flow and Out-flow Reporting Changes

The In-flow and Out-flow Reporting Changes are currently only a legislative proposal, which could potentially be considered by Congress this year. The proposed change would ultimately require all banks and payment service providers, including PayPal and Venmo, to report total inflows and outflows for accounts with at least $10,000 of total deposits and/or withdrawals to the IRS. This is intended to increase the visibility the IRS has into money coming in and out of customer accounts.

At this stage, unlike the 1099-K Threshold Change, this is just a proposal and the details are still up for debate. As the situation changes, we’ll be sure to keep this updated as we learn more.

Taxation is theft.

Sadly ? Why, "sadly" ?

I guess youve never heard of the nsa

I have thats why my location stay off

I am glad you think that matters.

i can send thousands back and forth in paypal instantaneously without any worries or fees

every time we need to do crypto it's a white knuckle exercise of ensuring that 40 character address was correctly written down without any typos with an unknown fee schedule and delivery date and then if i want to do anything with that money i need to do a bunch of other lengthy process that also require fees

it wasn't a jab at crypto, just that for sending money back and forth within the same country then paypal is infinitely better

If you value your privacy aren't you better off using cash?

Really not even close to the same thing as an example. Millions of people are using these apps to avoid paying taxes on business earnings. Think of all the Poker Bros, Pokerrrr 2, and PPPoker app style poker games where these hosts are funneling hundreds of thousands of dollars in earnings and not paying any taxes on it?

Again, this rule is strictly for businesses and catching people who are committing tax evasion. Not for when you send your buddy 50 bucks.

What about me sending my brother exactly $600/month for rent? I was tempted to send 500 and the the other 100 a week later when I heard about this recently but that seems even more suspicious obv.

Far more money is funneled through crypto than ewallets. Their fugazi claim of going after the rich people and then getting reports from $600 to invade the day to day life of the average working Joe should upset most people. The 1099K is triggered when you hit 600 in the calendar year, not at once.

doesn't matter it's aggregate, you could break it down to $1 transcations but once it exceed $600 it gets tracked

fwiw i do believe this still works for standard bank deposits/withdrawals/transfers

Then the gov't is using a 30 Ton Track Hoe to plant some tulips in your flower bed.

I was being sarcastic brother. I would have expected a smart person like yourself to have noticed that.