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

I have used PayPal to pay a yard guy. Is it my obligation to make sure he pays whatever taxes are due or is that up to him?

 

The recipient of the money.

 

Seems like a ridiculously low threshold. If I'm reading this right, if you collect on a split trip cost (say vacation rental or hotel or some other trip-related expense), you could be faced with a burden of proving that the money you received isn't genuinely "income." Is that correct? [EDIT: nevermind, I see where reimbursements are excluded.]

Go GATORS!
,WESGATORS

 

Wife and I make a good living. Anything we don’t want anymore we donate to a woman’s shelter. We have both tax accountant and tax attorney. This law doesn’t affect us at all. Who does it affect ? Lawn guy, Baby sitter, hustler who buys and resells goods online. Hardly the big money tax Dodgers. Hammers the small guy. Horrendous legislation. To compound the pain, What it does is enable the payer to negotiate a lower rate for cash. Also hammering the small guy. Lawn guy gets cash on Friday’s with 15% discount. Bathroom Tile guy gets paid cash Vs venmo for 10% off Etc etc

 

The income tax haters are always like "more people should have skin in the game" when it comes to income tax but then are like "this is horrible, it will hit all those hustlers and small earners that arent W2 type employees." Who do you think dont have "skin in the game?"

 

the ‘ income tax haters’ were opposed to this grotesque overreach from day 1 and called for what it was/is. Their reps aren’t the ones who voted this in

 

BUt they also complain about a set of people who arent being taxed and thus have "no skin in the game." Its extremely inconsistent. They want their symbolic penny of tax to assuage their fears of moochery from people who pay little to no tax, but call it overreach when the government takes the penny from a babysitter.

 

Didn’t the Pentagon just reveal it’s lost track of $1.2 trillion ? Probably why they’re hiring 65,000 new agents to come after us. They’ve got to make up for the shortfall somehow.

 

Can’t speak for anyone else but I don’t see it as binary nor inconsistent. First income tax was 3%. History and precedent indicate it may start as $600 Venmo but it won’t stop there. Any of you that have been through an audit understand it’s on you to prove you didn’t. The opposite of legal system. Sure you can attempt litigation but unless you’re the hourly litigator that option sucks financially and emotionally

 

PayPal reports his earnings with a 1099. Basically as an independent sub contractor tax wise

You have no obligation as the payee.

 

So do you think lawn people shouldn't pay income taxes because they can hide their income more effective than a receptionist for a company, let's say?

 

The ultimate goal, of course, is a cashless society. Privacy is gone. Technology gives and technology takes away.

 

The income reporting requirement doesn’t change. The lawn guy is still obligated to report his income
And sign the tax return indicating everything contained is true and accurate. He can lie now or lie with the new bill. The lion share additional IRS revenue will come from people like him and not the top 5% or top1%

 

This isn’t an issue of tax rate, right? It’s just an issue of enforcement. I think that if we don’t like the tax rate for lower earners, we should change it, rather than counting on those people to take matters into their own hands and conceal their earnings.

 

Will you be required to prove what you paid for the item you sell?

Will you be required to prove the “friend” isn’t someone your doing business with?

Sounds messy.

 

Can’t miss out on one penny to the Gov can we.

 

How do you prove it’s a reimbursement?

 

Not all that familiar with Venmo, but it looks like tagging a transfer as a purchase protects you money should you need a refund. So there is incentive as a consumer.

Go GATORS!
,WESGATORS

 

Never use it, and have stopped using paypal for years.

I use zelle. I find the money is nearly instantly moved.
I have renters pay me that way mostly.