IRS warns of $600 payments through Venmo, cash etc will get reported to them.

There is nothing about that article that hits corruption.

From your link:

The new rule only applies to payments received for goods and services transactions, meaning that using Venmo or PayPal to send a loved one a gift, pay your roommate rent, or reimburse a friend for dinner will be excluded. Also excluded is anyone who receives money from selling a personal item at a loss; for example, if you purchased a couch for $300 and sold it for $250, the amount is not taxable.

 

If you’re doing business through Venmo to avoid taxes it will be easier for the irs to catch it. It’s to catch tax cheats who aren’t paying existing taxes not a new one.

 

Are you for people adhering to existing tax law or not? It’s a simple question.

 

Specifically what worries you?

 

He's a Trumper. Laws are for other people.

 

It was a reminder regarding a preexisting requirement. Nothing new.
This is from 2017.
New Law Lowers Reporting Threshold for 1099-K Information Reporting | Department of Taxes
Although the publication is from the Vermont Department of Taxation, the state piggybacks on Federal tax law. And this is from 2020 when the Orange One was still in the White House. Although the focus is on legal fees received by attorneys, the principle applies to all cash payments of $600 or more.
IRS Form 1099 Rules for Settlements and Legal Fees
Also from 2020.
Prepare for New 1099-K Reporting Requirements Across the U.S.

 

And you are aware that's nothing new? The "overreach" dates back to 2017.

 

thanks whomever was president back then

 

the amount is not taxable but good lord that is a lot of paperwork if you routinely sell things household items such as clothing, electronics, etc that you don’t use anymore. If personal item sales are to be looked at as revenue perhaps it is time that personal purchases should be deducted as expenses, just saying

 

If you sell household items below what you paid it’s not taxable. My wife is a pro selling below cost so I know.

 

This is a long time coming actually. You could hide THOUSANDS in paypal previously. I mean in fairness, its the right move. Will there be overreach? I mean, its our government so maybe... But the policy itself is sort of a no brainer.

 

What happens if I send two payments of $500 for a $1,000 sale?

Seems like this would be fairly easy to get around.

 

Just because you think it isn't taxable doesn't mean the IRS doesn't until you prove it because they have now received a tax form from PayPal, Ebay, etc. that just says how much you sold it for. Hence the documentation. My wife sells old purses she doesn't want anymore. Value for each of those is more than $600. But for each of those over $600 we now have to document the loss.

Like I said, wastes a bunch of time and generates a bunch of paperwork for what is likely a bunch of people not actually selling as part of a business but selling personal items.

 

Off-topic and as my late Mother used to say "two wrongs do not make right" and I'm not even sure that requiring the reporting of relatively small sums of income is wrong. $600 here and $600 there and pretty soon one can have real income.

 

The IRS announced it would reduce the threshold of TOTAL payments every year. From $20k to $600. All payment services are required to 1099-k form anyone with transactions exceeding the threshold.

This year is a huge change for many folks
$19,999 of total income was literally unreported via such services (legally) until now.