The Biden administration’s plans to get into your personal bank accounts and monitor transactions over $600.00 was slapped down with the demise (currently) of the Build Back Better agenda. Just like the mandates for vaccines, Biden’s administration has turned to corporations to perform his dirty job. A line item inserted into the American Rescue Plan will now be the “back door” to finding out how Americans are spending their money.
It is not a tactic to take advantage of small businesses or weaponize IRS against the average American.
These new taxes laws on paypal, venmo and other services are just another way for the government to pick at the small guy.
— Dreamin’ 🆖 (@dreaminerryday) January 3, 2022
Daily Mail UK
President Biden’s IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.
Small businesses who receive payment through such apps will now have to report their income in order for them to be taxed.
Beginning Jan. 1, 2022, third-party payment processors were required to report such transactions. While businesses had to declare such incomes annually to the IRS, most companies didn’t keep records of small transactions.
They know how to do that. Small business owners that I know are extremely careful with their records, which sounds more like spin than reality. This is the only way to generate revenue. Contrary to Dementia Joe’s rants, entrepreneurs of every color have both on the ready. Biden and Co. are well aware that dirt will only be found under the rock.
So, who doesn’t have an accountant or lawyer on hand? The average person who uses peer-to–peer apps to reduce transaction costs and save money on bank charges. That ship is now gone.
Biden administration wants to tax Venmo transactions and cash app transactions exceeding 600 for the year. Claiming it’s only for good and services, but how will they determine that? How did they tax the rich? Y’all still believe all the lies his campaign spewed? Open your eyes.
— |}rew Su||[email protected] (@drewsullyg3) January 6, 2022
Only goods and service transactions are covered by the new rule. This does not include personal expenses such as paying rent to a roommate or reimbursements for friends. The rule also applies to anyone who sells a personal item for a loss. For example, a $700 couch that was sold for $650 is not included.
Businesses with more than $600 in electronic transactions will be required by cash apps to receive the 1099K form. For the tax season 2022, this change will take effect.
‘For the 2022 tax year, you should consider the amounts shown on your 1099-K when calculating gross receipts for your income tax return,’ PayPal warned on its website. ‘The IRS will be able to cross-reference both our report and yours.’
This is the privacy issue again. The IRS needs to know I have spent more than $600 on Botox treatment. Nails? Lingerie? Gun purchases? They need cross-referenceability. AnyAre they aware of all my transactions? Are they combing this way for every Amazon or Google transaction?
Doubtful, but they’ll rifle through the transactions of entrepreneurs and small businesses like their scrounging for loose change in their personal junk drawer.
It’s un-American and another infringement on civil liberties. Peer-to-peer app owners would not have permitted this. But as we are discovering with the vaccine mandates, it’s government money or their balls—so they gladly become eunuchs.
What will happen to Venmo and PayPal? They will lose significant revenue. They won’t be charging any service fees on transactions over $600.00. These apps won’t be available to the small retailer, freelancer, entrepreneur, or other businessperson who relied on them for their payments. American citizens will return to cash as their King. You can also expect an increase in transactions using crypto currencies.
Yesterday, a group of small business owners in my community announced that they won’t accept cash or checks for goods because of new Biden tax rules on peer-to–peer transactions (Venmo and Zelle..). #LetsGoBrandon
— SoTrumpie (@SoTrumpie) January 2, 2022
Necessity is the mother of invention, and since small business is the creative driver of the nation’s economy, the small business person will always invent that workaround.
Let’s Go, Brandon.